During a recession, real output actually falls.

Answer the following statement true (T) or false (F)

True

Real GDP falls during a recession, and unemployment rises.

Economics

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If inflation is eight percent, a nominal interest rate of six percent translates into a real interest rate of two percent

Indicate whether the statement is true or false

Economics

The inside lag is the:

a. time between a shock to the economy and the policy action responding to that shock. b. time between a policy action and its influence on the economy. c. time between a shock to the economy and the influence on the economy of a policy action. d. difference between the time it takes to implement monetary policy and the time it takes to implement fiscal policy.

Economics