Inflation that is ________ than what is expected benefits ________ and hurts _______

Inflation that is ________ than what is expected benefits ________ and hurts ________.

A) greater; lenders; no one B) greater; lenders; borrowers
C) less; lenders; borrowers D) less; borrowers; lenders

Ques. 2

If an increase in autonomous consumption spending of 10 million results in a 50 million increase in equilibrium real GDP, then

A) the MPC is 0.5. B) the MPC is 0.75. C) the MPC is 0.8. D) the MPC is 0.9.

Ques. 3

In recent decades the United States has incurred overall balance of payments deficits.

Indicate whether the statement is true or false

Ques. 4

Which of the following would be the source of a real business cycle?

A) changes in technology B) anticipated expansionary monetary policy
C) unanticipated contractionary monetary policy D) unanticipated expansionary monetary policy

Ques. 5

Use the dynamic aggregate demand and aggregate supply model and start with Year 1 in long-run macroeconomic equilibrium.

For Year 2, graph aggregate demand, long-run aggregate supply, and short-run aggregate supply such that the condition of the economy will induce the Federal Reserve to conduct a contractionary monetary policy. Briefly explain the condition of the economy and what the Federal Reserve is attempting to do.

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Inflation that is than what is expected benefits and hurts .

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