Prices, on average, increased in the food market; the demand for food had simply grown faster than supply from the end of the Civil War in 1865 to the beginning of World War I in 1913

Because of automatic stabilizers, government budget deficits are

a. positive during both expansions and contractions. b. negative during both expansions and contractions. c. zero if averaged out over the entire business cycle. d. larger during expansions and smaller during contractions. e. smaller during expansions and larger during contractions.

Macroeconomic theory can be helpful to business managers, because:

a. It is like a crystal ball showing the future. b. It can reduce the odds of making bad decisions and increase the odds of making goods ones. c. It shows how the future is rather predictable, and by using these tools, countless riches can be made. d. It has been shown to be a highly accurate way of forecasting economic activity. e. All of the above.