When a firm is earning zero economic profits

Twenty-four months after a 1 percentage point increase in the short-term (Treasury bill) interest rate, real GDP have fallen by about ________ in 1961-75, by ________ during 1976-1990, and by ________ during 1991-2007 period. 88-2004

A) 2%, 1%, 3% B) 0.1%, 2%, 1.8% C) 1.8%, 0.9%, 0.2% D) 0.2%, 0.1%, 0.9%

Keynesians and monetarists share the belief that

a. recessions are caused by falls in aggregate demand. b. the demand for money is stable. c. excess demand is a chronic problem in modern economies. d. the Federal Reserve is responsible for most recessions. e. stabilization policy is beneficial.