In a centrally planned economy, resources are allocated primarily in accordance with directives from government agencies.

An increase in housing starts, typically due to __________ interest rates, is often thought to precede __________

A) rising; an expansion B) rising; a recession C) falling; an expansion D) falling; a recession

If the unemployment rate for the United States economy rises from 7 to 11 percent during a year, we can conclude that:

A.  Actual GDP exceeds potential GDP B.  Actual GDP is less than potential GDP C.  The economy is experiencing only frictional unemployment D.  The natural rate of unemployment for the United States economy has risen