Since 1948, the history of real wage rates generally shows that
A. prices and wages have risen at the same rate.
B. prices have risen at a slower rate than wages.
C. prices have risen faster than wages.
D. real wages have remained constant over the period.
Answer: B
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Macroeconomics deals with
A. the what, who, and how questions faced by any economy B. the role of prices and markets in allocating outputs C. the determinants of aggregate output, overall levels of prices and inflation, growth, etc. D. all of the above
If the Fed's policy reaction function equals r = .02 + ?, where r is the real interest rate and ? is the inflation rate. When the inflation rate is at the current target of 2 percent, then the real interest rate will be set at:
A. zero. B. 6 percent. C. 2 percent. D. 4 percent.
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
In an imperfectly competitive industry
A. a single firm has some control over the price of its output. B. the government will always regulate the output price. C. a single firm has no control over the price of its output. D. a single firm will be able to sell all of its output at whatever price it wants to charge.