When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.

For an individual LM curve, the money supply is assumed to

A) be constant. B) grow at a rate equal to the interest rate. C) grow at a rate equal to the growth rate in income. D) grow at a rate equal to the marginal propensity to consume.

In the model of perfect competition, the market demand curve is found by

A) a marketing analysis. B) taking the demand curve of a "representative consumer" and expanding it by the number of consumers of the good. C) horizontally summing the demand curves of individual consumers. D) horizontally summing the supply curves of individual firms.