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

To ensure all students are protected from getting the flu this year, your school offers free flu shots. What type of externality exists in this example?

A) negative consumption externality B) positive consumption externality C) positive production externality D) negative production externality E) neutral externality

In Figure 5-1 above, the impact of automatic stabilization is depicted by the movement from

A) A to F. B) A to B. C) A to C. D) D to A.