If the bidders at a first-price auction have true values of $78, $72, $66 and $65, the item will sell for

Which of the following is a characteristic of an institution?

A) The institutions of a nation are permanent and cannot be changed over time. B) Institutions place constraints on the behavior of economic agents. C) Institutions are determined by individual opinions without considering the government's preference. D) Institutions have very little influence on a nation's economic prosperity.

Under a fixed exchange rate system, if the real interest rate is at its lower bound and the central bank implements expansionary policy, real GDP will ________ and the output gap will ________

A) increase; increase B) decrease; decrease C) increase; decrease D) not change; not change