John Maynard Keynes believed that the government should play a role in fighting both unemployment and inflation.

For computers and other business equipment, small changes in business earnings tend to generate relatively large short-run changes in the demand for this equipment, and the long-run income response tends to be smaller. Industries that face demand behavior of this type are known as:

A. natural monopolies. B. cartels. C. cyclical industries. D. constant-cost industries.

When cost-push inflation starts, real GDP ________ and the unemployment rate ________

A) decreases; falls B) does not change; falls C) decreases; rises D) does not change; does not change E) increases; falls