The opportunity cost of labor is the time forgone for leisure

If aggregate expenditures are lower than real GDP:

A. actual real output is less than equilibrium real output. B. aggregate output increases. C. employment increases. D. there will be unplanned increases in inventories.

If the Fed sells bonds through its open market operations, then there is

A) a decrease in interest rates because of the increase in the supply of bonds. B) an increase in the demand for bonds and a rise in the price of existing bonds. C) a decrease in interest rates because of the decrease in the demand for bonds. D) an increase in the supply of bonds and a fall in the price of existing bonds.