For banks, net interest income is becoming a __________ proportion of their total operating income as the banks are __________ nontraditional sources of revenue
A) rising; shifting into
B) rising; pulling out of
C) falling; shifting into
D) falling; pulling out of
A
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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
When output is below potential and the policy rate has hit the floor of zero, if policymakers do nothing, output will ________ and inflation will ________
A) rise; fall B) fall; fall C) fall; rise D) rise; rise
If the percentage change in quantity demanded is smaller (in absolute value) than the percentage change in price, then demand is
a. inelastic b. elastic c. unit elastic d. determined by supply e. inadequate compared to supply
In the twentieth century, fluctuations in real GDP were
a. less severe during the last 50 years than was true during the first half of the century. b. virtually eliminated as the result of the countercyclical application of fiscal policy. c. more severe during the last 50 years than was true during the first half of the century. d. primarily the result of a fiscal policy that has persistently balanced the federal budget.