Which of the following will most likely occur during the contractionary phase of a business cycle?
What will be an ideal response?
The sales of most businesses decline, and the employment rate rises.
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Which of the following instruments are traded in a capital market?
A) corporate bonds B) U.S. Treasury bills C) negotiable bank CDs D) repurchase agreements
In the long-run ISLM model and with everything else held constant, the long-run effect of an expansionary fiscal policy is to ________ real output and ________ the interest rate
A) increase; increase B) not change; not change C) increase; not change D) not change; increase
The belief that the U.S price level will rise in the future will tend to cause, other things the same ________
A) no change in the value of the U.S. dollar B) an increase in the value of the U.S. dollar C) no change in the value of the U.S. dollar in the short-run D) a decrease in the value of the U.S. dollar
Differences in marginal revenue products among workers can help explain the presence of wage differentials
a. True b. False