Referring to Figure 1.9, if a point is attainable, it is in 
A. AREA #2 but not on the curve.
B. AREA #1 or is on the curve.
C. AREA #1 but not on the curve.
D. AREA #2 or is on the curve.
Answer: B
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In the above figure, the short-run aggregate supply curve is SAS and the aggregate demand curve is AD. An inflationary gap exists
A) if the long-run aggregate supply curve is LAS1. B) if the long-run aggregate supply curve is LAS2. C) if the long-run aggregate supply curve is LAS3. D) All of the above answers are correct.
An example of price discrimination is the price charged for:
a. a postage stamp. b. theater tickets that offer lower prices for children. c. an economics textbook at a campus bookstore. d. Any of these.
The purpose of a crop limitation program is to
a. increase the demand for farm goods b. decrease the demand for farm goods c. increase the supply of farm goods d. decrease the supply of farm goods e. reduce the excess demand resulting from a price ceiling program
The transmission mechanism in monetary policy is the
A. manner in which a buying or selling of bonds ultimately impacts important macroeconomic variables such as real GDP. B. decision making process. C. name given to describe the tightening of monetary policy. D. name given to describe the easing of monetary policy.