Based on current budget projections, in the U.S. over the next 20 years the
a. structural deficit rises will fall sharply as tax revenues rise.
b. cyclical deficit will fall as the economy expands.
c. structural deficit will rise sharply as a higher proportion of the population retires.
d. structural deficit will fall sharply as more people enter the workforce.
e. none of the above.
C
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Based on the figure below, the economy is initially at point A on the monetary policy reaction function (RF1) and the aggregate demand curve (AD1). The actual rate of inflation is p' and the Federal Reserve's target inflation rate is p*1. 
If the Federal Reserve raises its target inflation rate to p*3, then the Federal Reserve's monetary policy reaction function will ________ and the aggregate demand curve will ________.
A. shift to RF2; shift to AD2 B. shift to RF3: shift to AD3 C. shift to RF3; shift to AD2 D. shift to RF2: shift to AD3
Which of the following is NOT a characteristic of a pure monopoly?
A. Firms cannot enter freely. B. Firms sell unique products. C. Firms can control a scarce resource. D. Firms are unable to acquire patents.
Suppose Larry's Lariats produces lassos in a factory, and uses nine feet of rope to make each lasso. The rope is put into a machine that automatically cuts it to the right length, then seals the ends to prevent fraying. The rope is then hand tied, dipped, and wound before being placed in a packaging machine to prepare it for retail sale. Which of the following would be considered a fixed cost for this company?
A. The packaging material B. The cost of rope C. Employee wages D. None of these would be considered a fixed cost.
A system of prices promotes mutually advantageous exchanges
What will be an ideal response?