When real GDP increases, this implies that the production of goods and services has risen

Real shocks to one area of the economy:

A. can be amplified and transmitted to other areas of the economy. B. generally remain isolated to that area of the economy. C. can cause nominal shocks to other areas of the economy. D. always become weaker as they spread to other areas of the economy.

In the 1965 to 1973 period, U.S. policymakers ________

A) targeted an unemployment rate that, in hindsight, was likely too low B) pursued an easing of monetary policy designed to increase aggregate demand C) made some mistakes that led to the most sustained inflationary episode in U.S. history D) all of the above E) none of the above