Use the following figure to answer the next question. 
The economy is at equilibrium at point A. What fiscal policy would be most appropriate to control demand-pull inflation?
A. Shift aggregate demand by increasing government purchases.
B. Shift aggregate supply by increasing taxes.
C. Shift aggregate demand by decreasing taxes.
D. Shift aggregate demand by increasing taxes.
Answer: D
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Research has shown that voters are more likely to turn out in elections with ________ electorates and when the election is likely to be ________.
A. large; not very competitive B. small; not very competitive C. small; very competitive D. large; very competitive
Refer to the list. The outcome in a monopsony labor market is shown by:
1. W < MRP; W < MRC 2. W = MRP; W < MRC 3. W = MRP; W = MRC 4. W > MRP; W > MRC A. 1. B. 2. C. 3. D. 4.
Under a flexible exchange rate system, one factor that does NOT directly affect rates of exchange is
A. changes in the inflation rate in each country. B. changes in gold holdings in each country. C. changes in productivity in each country. D. changes in economic stability in each country.
The distances from Paris, France, to Frankfurt, Germany; Stockholm, Sweden; and Oslo, Norway, are about 400 miles, 450 miles, and 500 miles, respectively. Would you expect French trade to be greatest with Germany, Sweden, or Norway?
a. Germany b. Sweden c. Norway d. Equal volumes of trade would be expected with each country.