When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.

New classical economists like Robert Lucas argue that the Great Depression was primarily caused by

a. lots of mistaken expectations about the future. b. significant falls in investment. c. significant falls in the money supply. d. significant increases in taxes. e. all of the above.

Choose the statement about an effective minimum wage that is correct.

A. The minimum wage is a fair rule because otherwise? low-skill workers would earn a lower wage. B. The minimum wage imposes a fair rule because it is legislated by the government and passed into law by majority rule. C. The result of the minimum wage is fair because those who find jobs are the least well off. D. The result of the minimum wage is unfair because only those people who have jobs and keep them benefit from the minimum wage.