The variables in the index of leading indicators are included in the index because
a. they turn down prior to a deflation and turn up prior to an inflation.
b. they generally lag behind turns in the business cycle.
c. they turn down prior to a recession and turn up before the beginning of a business expansion.
d. they provide a comprehensive measure of the current state of the economy.
C
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Which of the following is the most important of the over-the-counter markets?
A) the S&P 500 B) the Chicago Mercantile Exchange C) New York Stock Exchange D) the NASDAQ
In her book on the American work week, economist Juliet Schorr argues that Americans work too much. Her argument may be interpreted as concluding that this behavior
a. increases GDP but decreases well being. b. increases GDP and increases well-being. c. decreases GDP and decreases well being. d. decreases GDP but increases well being.
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
In 2008, the Treasury and Federal Reserve took action to save large financial firms such as Bear Stearns and AIG from failing. Which of the following is one reason why these measures were taken?
A) The bankruptcy of a large financial firm would force the firm to sell its holdings of securities, which could cause other firms that hold these securities to also fail. B) The Emergency Economic Stabilization Act required the Fed and the Treasury to provide financial assistance to firms that participated in regular open market actions with the Fed. C) The failure of these firms would have forced the Fed to increase interest rates, which could have led to a severe recession. D) The Fed and the Treasury wanted to allow Freddie Mac and Fannie Mae more time to buy the firms before they went bankrupt.