A nation's production possibilities curve should, ceteris paribus, shift
A. Inward if gross investment exceeds depreciation.
B. Outward if net investment is positive.
C. Inward if net investment is zero.
D. Outward if gross investment is positive.
Answer: B
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
Which of the following appears to be evidence against the public interest view of the Fed's motivation?
A) The conflict with the Treasury over interest rate fixing during World War II. B) The failure of the Fed to emphasize the goal of price stability. C) The unwillingness of the Fed to turn over its excess profits to the Treasury. D) The independence of Fed chairmen from the authority of the President.
Which of the following has not influenced global poverty rates?
A. Gini coefficient B. Increasing population C. Income polarity D. Differential access to health care
Which of the following is not a tool of fiscal policy?
What will be an ideal response?