The slope of the LM curve has been shown to depend most crucially on the interest elasticity of
a. consumption.
b. saving.
c. money demand.
d. investment.
C
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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 what ways can economists help auto manufacturers estimate the marginal rate of substitution between features such as vehicle interior size and acceleration?
A) Examining production cost data B) Conducting consumer surveys about willingness to pay for auto features C) Solving the standard consumer model D) Statistically analyzing historical data on purchases of different types of autos E) B and D only
The long-run result of government intervention in responding to a recession is:
A. the same level of output at higher prices. B. higher level of output at higher prices. C. higher level of output at lower prices. D. lower level of output at the same prices.
Which of the books used at the FOMC meetings contain the Board staff's economic forecast for the next few years?
A. The Tealbook B. The Beigebook C. Both the Beigebook and Bluebook D. The Bluebook