The demand for loanable funds curve shows the ________ relationship between the market interest rate and the quantity of loans demanded
a. positive
b. negative
c. direct
d. independent
b
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If the price of A is $12 and the price of B is $3, the budget line tells us that a consumer in effect can trade:
A. 12 units of A for 3 of B. B. 1 unit of A for 4 of B. C. 1 unit of A for 3 of B. D. 1 unit of B for 4 of A.
One major reason that economists are concerned about unemployment is that
A. unemployment reduces the size of the labor force. B. the economy is producing less output than if there were full employment. C. unemployment always leads to frictional unemployment. D. unemployment shifts the production possibilities curve outward.
Imperfect information on the part of buyers and sellers
A. remains a barrier to achieving market efficiency, at least in some industries. B. is no longer a problem because the "truth-in-advertising" regulations have been instituted. C. cannot persist in a market economy. D. will not stop the economy from achieving market efficiency, assuming the other conditions for market efficiency hold.
The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A