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; A
B. Falling; A; C
C. Falling; B: C
D. Rising; A; C
Answer: B
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In 1976 New Jersey voters passed a referendum to legalize gambling. Several gambling casinos opened in Atlantic City beginning in 1978 and were initially very profitable, attracting people from the Mid-Atlantic and Northeastern states
Entrepreneurs in these states were unable to compete with the Atlantic City casinos because casino gambling was illegal in their states. For these entrepreneurs in the other states, the barrier to entry they were facing was A) government imposed. B) self imposed. C) due to economies of scale. D) due to ownership of a key resource.
The interest rate the Fed charges banks borrowing from the Fed is the
A) federal funds rate. B) Treasury bill rate. C) discount rate. D) prime rate.
Assume the Expectation Hypothesis regarding the term structure of interest rates is correct. Then, if the current one-year interest rate is 4% and the two-year interest rate is 6%, then investors are expecting the future one-year rate to be:
A. 8%. B. 6%. C. 5%. D. 4%.
Answer the following questions true (T) or false (F)
1. The U.S. is highly sensitive to increasing interest rates. 2. The U.S. farm sector is characterized by a large number of large, highly capitalized farming operations. 3. A major change in farm program policy forthcoming in the 2014 farm bill involves greater reliance on property insurance as a means of providing a safety net to farmers.