Which of the following is true?
a. Anticipated inflation is an increase in the price level that comes as a surprise, at least to most individuals.
b. Unanticipated inflation is a change in the price level that is widely expected.
c. Decision makers are generally able to anticipate slow steady rates of inflation with a fairly high degree of accuracy.
d. Inflation will increase the prices of goods and services that households purchase but not the wage rates of workers.
C
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Which of the following is the Fed's most common way to change the money supply?
a. Moral suasion b. The discount rate c. The required reserve rate d. Open market operations
Demand refers to the amount buyers wish to buy, whereas the quantity demanded refers to the position of the demand curve
a. True b. False Indicate whether the statement is true or false
The nation of Isolani forbids international trade. In Isolani, you can exchange 1 car for 5 motorcycles. In other countries, you can exchange 1 car for 4 motorcycles. These facts indicate that
a. other countries have an absolute advantage, relative to Isolani, in producing cars. b. Isolani has a comparative advantage, relative to other countries, in producing cars. c. if Isolani were to allow trade, it would import motorcycles. d. the world price of motorcycles exceeds the price of motorcycles in Isolani.
Refer to the information provided in Figure 8.9 below to answer the question(s) that follow. 
Figure 8.9
Refer to Figure 8.9. This farmer's profit-maximizing level of output is ________ units of output.
A. 100 B. 350 C. 500 D. 700