The trade balance component of aggregate demand is a function of all the following EXCEPT:
a. foreign disposable income.
b. domestic disposable income.
c. the real exchange rate.
d. consumer spending.
Ans: d. consumer spending.
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Exhibit 36-1 Bond FaceValueof Bond Price ofthe Bond Annual CouponPayment A $1,000 $850 $25 B $1,000 $950 $41 C $1,000 $1,100 $52 D $1,000 $1,100 $32 E $1,000 $1,000 $50 Refer to Exhibit 36-1. The yield on bond C is approximately
A. 0.05 percent. B. 5.2 percent. C. 4.7 percent. D. 100 percent.
Structural unemployment is:
A. the effect of wages remaining persistently above the market-clearing level. B. a mismatch between the skills workers can offer and the skills that are in demand. C. when workers voluntarily quit their jobs. D. unemployment caused by workers who are changing their location, job, or career.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
In the long run, if we ignore changes in velocity, inflation will:
A. equal money growth plus the growth in potential output. B. equal money growth less the growth in potential output. C. equal the rate of money growth. D. be zero.