Suppose that the demand for money increases as people anticipate upcoming economic problems. To offset this increase in money demand, the Fed should ________ the money supply, which would put ________ pressure on nominal interest rates.

An increase in which of the following will shift the economy's productivity (GDP/L) curve?

a. the quantity of laborers b. technology c. capital d. output e. consumption

If desired investment exceeds actual investment, then

A. Inventories are less than the desired level. B. Cyclical unemployment exists. C. Inventories are accumulating beyond desired levels. D. A recessionary GDP gap will emerge.