When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline
B. increase; raise; decline
C. decline; lower; expand
D. decline; raise; decline
Answer: C
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The term discouraged worker refers to an individual who: a. prefers full-time employment but works only part time
b. has given up looking for a job because he has lost the hope of getting a new job. c. is jobless because of the seasonal nature of his job. d. is jobless because of a recession in the economy.
The fact that voters perceive their votes as unlikely to actually change the outcome of an election causes
a. voters to have little incentive to become informed about candidates and political issues. b. voters to spend a great deal of effort becoming informed about candidates and political issues. c. the percent of people who actually turn out to cast a vote on election day to be very high. d. people to be extremely reluctant to "waste" their votes on a third-party candidate.
Judging from their statements, which of the following people is most likely to support supply-side economic policies?
a. Savana, who says government should increase corporate taxes to make the rich pay their fair share b. Leonardo, who says the government should spend more money to finance social welfare programs c. Brenda, who says government should ease its oversight of most types of businesses d. Octavio, who says the government should tax capital gains at regular income rates
The demand for land is derived from __________________.
Fill in the blank(s) with the appropriate word(s).