A lump-sum tax, such as a $1000 tax that every family must pay one time, is

During periods of poor economic performance, real GDP

A) declines and unemployment declines. B) is unchanged but unemployment rises sharply. C) declines and unemployment rises. D) declines but unemployment typically does not change.

If the Fed wants to raise the interest rate, in the short run in the money market the Fed

A) increases the quantity of money. B) shifts the demand for money curve leftward. C) shifts the demand for money curve rightward. D) decreases the quantity of money. E) directly raises the interest rate and does nothing to either the supply of money or the demand for money.