When output is less than the economy's long-run capacity, which of the following is most likely to occur?
a. an abnormally low rate of unemployment
b. reductions in real interest rates and real resource prices
c. a sharp increase in imports
d. a government budget surplus
B
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If a security held by a bank falls in market value, that loss
A) must be recorded by the bank, no matter what. B) will be recorded by the bank only if the security is of the type they hold to maturity. C) will be recorded by the bank only if the security is of the type they often sell before maturity. D) will be recorded by the bank only if it sells the security.
The North American Free Trade Agreement and the European Union are examples of
A) defense treaties. B) regional trade blocs. C) labor agreements designed only for industrialized countries. D) agriculturally based economies.