In the short term, an increase in government spending may
A. raise taxes but reduce wages.
B. raise prices and wages.
C. raise wages and reduce inflation.
D. reduce taxes and wages.
Answer: B
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Suppose we were analyzing the Turkish lira per euro foreign exchange market. If there is the expectation that the euro will fall in value in the near future. As a result of speculators' actions the:spot
a. Supply of euros in the foreign exchange market falls, and the demand for euros in the foreign exchange market falls, causing an uncertain change in the value of the euro. b. Supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market falls, causing an appreciation of the euro. c. Supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market rises, causing an uncertain change in the value of the euro. d. Supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market falls, causing a depreciation of the euro. e. Supply of euros in the foreign exchange market falls, and the demand for euros in the foreign exchange market rises, causing an appreciation of the euro.
When inflation equals the value determined by past expectations and pricing decisions and output equals the level of short-run equilibrium output consistent with that inflation, the economy is said to be in ________ equilibrium.
A. short-run B. long-run C. full-employment D. potential
If the economy were producing at 12 units of outboard motors and 8 units of robots
A. the economy would be at a point inside its production possibilities curve.
B. the economy would be at a point outside its production possibilities curve.
C. the economy would have unemployed resources.
D. the economy would be at a point inside its production possibilities curve AND would have unemployed resources.
Refer to the information provided in Figure 7.1 below to answer the following question(s). 
Figure 7.1Refer to Figure 7.1. A corn producer produces 80 bushels of corn and sells each bushel at $5. The cost of producing each unit bushel is $2. This corn producer's total revenue is ________ and profit if ________.
A. $400; $160 B. $160; $0 C. $400; $240 D. $240; $80