Refer to the information provided in Figure 29.1 below to answer the question(s) that follow.
Figure 29.1Refer to Figure 29.1. If policy makers decide to on a policy at Point t5 but it does not affect the economy until period t7, then the policy choice is likely to be
A. ineffective.
B. inappropriate.
C. optimal.
D. none of the above.
Answer: B
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The substitution effect of wages explains shifts in the labor supply curve.
Answer the following statement true (T) or false (F)
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
If an economy is producing a combination of goods that places it on the production possibilities curve, then it has:
A) economic growth. B) full employment. C) inefficiency. D) idle factors of production.
Appreciation of the euro relative to the dollar means that the
A. dollar price of the euro has fallen. B. euro price of gold has risen. C. euro prices of U.S. goods exported to the nation's that adopted the euro as its currency have fallen. D. euro is cheaper for Americans.