If the Fed expects currency holdings to rise, it conducts open market ________ to offset the expected ________ in reserves

In the classical IS—LM/AD—AS model, a beneficial productivity shock would ________ output, ________ the real interest rate, and ________ the price level

A) increase; decrease; increase B) increase; decrease; decrease C) increase; increase; decrease D) decrease; decrease; increase

If the labor force in an economy is not fully employed, then

a. the economy is operating outside of its production possibilities frontier b. the economy is operating on its production possibilities frontier c. there must have been an increase in technology to compensate for the labor shortage d. the opportunity cost of producing more of one good is negative e. the economy is operating inside its production possibilities frontier