Suppose the economy is producing at the natural rate of output. A decrease in consumer and business confidence will cause ________ in real GDP in the short run and ________ in inflation in the short run, everything else held constant
A) an increase; an increase
B) a decrease; a decrease
C) no change; an increase
D) no change; a decrease
B
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If the real interest rate is less than the equilibrium real interest rate, there is a ________ of loanable funds, and ________
A) shortage; savers increase their saving supply to restore the equilibrium B) shortage; borrowers have an easy time finding the funds they want C) surplus; some borrowers cannot find the funds they want D) shortage; some borrowers cannot find the funds they want E) surplus; borrowers have an easy time finding the funds they want
The price elasticity of supply along a typical supply curve is
a. constant. b. equal to zero. c. higher at low levels of quantity supplied and lower at high levels of quantity supplied. d. lower at low levels of quantity supplied and higher at high levels of quantity supplied.