The aggregate demand–aggregate supply model shows that closing an expansionary gap involves deflation and closing a recessionary gap involves inflation

Because of securitization, a new class of residential mortgages offered to borrowers with less-than-stellar credit records developed. These mortgages are known as

A) risk-enhanced mortgages. B) subprime mortgages. C) bundled mortgages. D) adjustable-rate mortgages.

Gross domestic product is calculated as the sum of the

A) total quantity of final goods and services produced in the economy during a period of time. B) total quantity of goods and services produced in the economy. C) total market value of goods and services produced in the economy. D) total market value of final goods and services produced in the economy during a period of time.