Suppose an acre of land yields 100 bushels of corn and that one bushel of corn provides enough seed for one-quarter of an acre of land. The opportunity cost of consuming another 100 bushels of corn today is

The length of time before policymakers realize they need to intervene in the economy is called the

A) recognition lag. B) implementation lag. C) impact lag. D) liquidity lag.

As actual output falls below the potential level in the short run, which of the following is most likely to occur? a. More resources will become unemployed. b. The price level will increase

c. Real GDP will increase. d. Nominal GDP will remain constant. e. The natural rate of unemployment will fall.