Refer to the information provided in Figure 26.7 below to answer the question(s) that follow.
Figure 26.7Refer to Figure 26.7. Which of the following statements characterizes an output level of $800 billion?
A. It can be achieved only if investment is independent of the interest rate.
B. It is attainable in the short run but it is associated with increases in the price level.
C. It is sustainable over the long run without inflation.
D. It is achievable only in the long run.
Answer: B
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Government shares in the gains to risk-bearing activities but does not _____
a. share in the losses when depreciation is straight-line b. share in the losses when the investor has no other income c. share in the losses when depreciation is accelerated d. share in the losses when capital losses are allowed
The study of an economy's price level is explicitly a part of
A) macroeconomics. B) microeconomics. C) positive economics. D) normative economics.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
In the classical model, an increase in the unemployment rate
A. will result in an increase in the price level if the reduction in output is caused by a change in aggregate demand. B. is a signal of demand-pull inflation. C. will persist when the reduction in output is caused by a reduction in aggregate demand. D. will likely be temporary.