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Potential real GDP minus actual real GDP

If stock (market) prices are a leading indicator, then economic activity goes up

A paper was published recently showing that whales and elephants have a large number of extra copies of the p53 gene. Given this information, would you expect these very large animals to have a higher or lower incidence of cancer when compared to humans? Briefly explain.

The natural rate of unemployment is the unemployment rate that would exist in the absence of

An increase in household weath will _________ consumption

As firms approach full capacity, ________ investment spending is required to expand output further.

When prices fall, people need less money to purchase the same quantity of goods, so they use their money holdings to buy bonds and other financial assets. The increased demand for bonds ______ bond prices and causes interest rates to _______.

Other things equal, an increase in government spending

The four phases of a business cycle, in order, are

Other things being equal, an appreciation of the domestic currency on the foreign exchange market will make domestic goods ______ to foreign buyers and make foreign goods _________ to domestic residents, so net exports will fall.