Businesses hold inventories based on what they expect their sales to be. When aggregate________is greater than expected, inventories_______the targeted levels.
a
supply; fall below
b
demand; fall below
c
supply; remain constant
d
demand; remain constant
Economists do not agree on whether a_______business cycle exists in the United States.
a
real
b
political
c
GDP
d
credible
Keynesian economics grew out of the_________, when inflation was no problem but output was_____.
a
1960’s; rising
b
1970’s; falling
c
1930’s; falling
d
1950’s; rising
The lesson of new classical economics for policymakers is that managing aggregate______has an effect on real_____only if change is unexpected.
a
supply; GDP
b
demand; GDP
c
supply; GNP
d
demand; GNP
Real GDP divided by the population.
a
Per capita real GDP
b
Rule of 72
c
compound growth
d
Per capita real GNP
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