An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.

If a large number of workers are classified as being out of the labor force when they are really looking for work, this will lead to an official unemployment rate that is

A) overstated. B) understated. C) neither overstated or understated. D) unbiased.

A decrease in wealth leads to a

A) downward movement along the supply of loanable funds curve. B) rightward shift of the demand for loanable funds curve. C) leftward shift of the demand for loanable funds curve. D) rightward shift of the supply of loanable funds curve. E) leftward shift of the supply of loanable funds curve.