If the central bank targets a rate of nominal GDP growth, then it would have to _____ money growth when nominal GDP fell below its target in order to _____ inflation and ____ real GDP
a. increase; increase; increase
b. increase; decrease; decrease
c. decrease; decrease; decrease
d. decrease; decrease; increase
A
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
The key to a successful positive signal is that:
A. it is costly to fake. B. it is hidden information. C. it builds trust between the principal and the agent. D. All of these statements are true.
The nation has its own MPC. When disposable income increases from $300 billion to $400 billion, national consumption increases from $300 billion to $360 billion. At Y = $400 billion, the MPC is:
a. 0.2. b. 0.5. c. 0.6. d. 0.67. e. 1.33.
The GDP growth rate is report at annualized rate. This means each quarter’s growth rate is ______ and reported as if the economy had the same growth rate for the entire year.
a. divided by 12 b. multiplied by 4 c. divided by 4 d. multiplied by 12