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

In the figure above, the middle fifth of all households receive what share of income?

A) 10 percent B) 30 percent C) 20 percent D) 5 percent

The economic growth model predicts that

A) GDP per capita of poor countries will grow more rapidly than in rich countries. B) GDP per capita of poor countries will never change. C) Governments must centrally direct the economy for growth to occur. D) GDP per capita of rich countries will grow more rapidly than in poor countries.