Based on the figure below. Starting from long-run equilibrium at point C, a favorable inflation shock that decreases inflation from ? to ?1 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. A; C
B. B; A
C. B; C
D. A; B
Answer: A
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The value of the marginal product of a resource is equal to:
a. the marginal revenue of the firm, if the product market is perfectly competitive. b. the market price of the product divided by the price of the resource. c. the market price of the product divided by the marginal product of the resource. d. the marginal revenue product of the resource, if the product market is perfectly competitive. e. the marginal product of the resource divided by the price of the resource.
In an economy that has no foreign trade, if real GDP declines by $160 million following a decline in investment spending of $40 million, then the marginal propensity to consume must be equal to _____
a. 2 b. 0.33 c. 4 d. 0.75 e. 0.4
The portion of aggregate expenditure that is independent of output is called ________ expenditure.
A. actual B. potential C. autonomous D. planned
One way of organizing two periods of panel data is to have only one record per cross-sectional unit.
Answer the following statement true (T) or false (F)