Refer to Figure 1. If the Fed increases the discount rate  

Refer to Table 1. At an output level of $2,000 billion, there is a tendency for output ________.

Inflation refers to a(n) __________ in the overall __________ level. 

Refer to the information provided in Table 2 below to answer the questions that follow. Table 2 2013 2014 2015 Quarter I II III IV I II III IV I II III IV Output 96 98 100 93 90 88 87 86 90 95 100 103

An efficient market is a market

Justin borrows $1000 from Dexter.  Dexter wants to make a 5% real return (real interest rate) on his money, so they both agree on a 5% nominal interest rate paid next year. Both do not anticipate the 3% inflation next year. In this case,

Refer to Table 2. In this economy, a contraction existed around the _________.

If nominal GDP is $20 trillion and real GDP is $12.5 trillion, the GDP deflator is _______. 

Essay Question 2.b Refer to Table 4. Assume year 2 is the base year (that means the price in year 2 is the constant price). Compute this economy’s real GDP in years 1.

__________ defended the economic concept of “market clearing”.