Demand-pull inflation is
A. inflation caused by increases in aggregate demand that generate an even larger increase in aggregate supply.
B. inflation caused by reductions in short-run aggregate supply.
C. inflation caused by reductions in long-run aggregate supply.
D. inflation caused by increases in aggregate demand that are not matched by increases in aggregate supply.
Answer: D
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Suppose you purchase a bond with a coupon of $50 for $1010. You sell it one year later for $900. What rate of return did you earn? Report a percentage with two decimal places
What will be an ideal response?
Import quotas:
Have the same effect on producers as export subsidies Can be considered to be a form of voluntary export restraints Require agreement between importing and exporting nations Set the number of units of a product that can be imported
The part of the balance of payments account that lists all long-term flows of payments is called the:
a. financial and capital account. b. balance of trade. c. current account. d. government financial account.
Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B