An unexpected sharp reduction in inflation will most likely result in
a. the rapid growth of output and employment.
b. a reduction in the actual rate of unemployment.
c. a reduction in the natural rate of unemployment.
d. a temporary increase in unemployment and a decline in real output.
D
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Which one of the following statements best describes the future of global freshwater supplies?
a. Water shortages are likely to become less frequent in both developed and developing countries b. Water shortages are likely to become less frequent in developing countries but more frequent in developed countries c. Water shortages are likely to continue at present rates in both developing and developed countries d. Water shortages are likely to increase, mainly in developed countries e. Water shortages are likely to increase, mainly in developing countries
The ________ the marginal tax rate, the ________ the effect on aggregate expenditure from a change in investment
A) smaller; smaller B) smaller; larger C) larger; smaller D) larger; larger E) More information about the effect on GDP is needed to answer the question.