Refer to the information provided in Figure 17.1 below to answer the question(s) that follow. 
Figure 17.1 Refer to Figure 17.1. Dmitri has two job offers when he graduates from college. Dmitri views the offers as identical, except for the salary terms. The first offer is at a fixed annual salary of $40,000. The second offer is at a fixed salary of $20,000 plus a possible bonus of $40,000. Dmitri believes that he has a 50-50 chance of earning the bonus. If Dmitri takes the offer that maximizes his expected utility and is he is risk averse, then
A. he will take the first offer.
B. he will take the second offer.
C. he is indifferent between the offers-both yield the same expected utility.
D. Indeterminate from the given information-we cannot say what he will do.
Answer: A
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An increase in real net exports leads to an increase in real GDP. Further
A) real consumption spending increases while real investment spending decreases. B) real government spending decreases to offset the increase in real net exports. C) real consumption spending and real saving increase. D) real consumption spending increases but real saving does not change.
Contractionary fiscal policy could be carried out by
A. an increase in government spending and/or a decrease in taxes. B. an increase in transfer payments. C. a decrease in government spending and/or an increase in taxes. D. All of the choices are correct.
Under monetary neutrality, an increase in the money supply causes output to ________ and the price level to ________.
A. rise; rise B. not change; rise C. rise; not change D. not change; not change
The statement "the unemployment rate is 5.1%" is an example of a
A. normative statement. B. non-verifiable statement. C. value judgement. D. positive statement.