Refer to Exhibit 9-7. Which point is representative of the economy experiencing labor market shortages?

If the Fed orders a contractionary monetary policy, describe what will happen to the following variables relative to what would have happened without the policy:

a. The money supply b. Interest rates c. Investment d. Consumption e. Net Exports f. The aggregate demand curve g. Real GDP h. The price level

An closest example of a risk-free security is

a. General Motors bonds b. AT&T commercial paper c. U.S. Government Treasury bills d. San Francisco municipal bonds e. an I.O.U. that your cousin promises to pay you $100 in 3 months

Local governments rely most heavily on

a. personal income taxes b. corporate income taxes c. estate taxes d. property taxes e. excise taxes

Which of the following is true of long-run equilibrium in a perfectly competitive market? a. At the profit-maximizing price, average total cost is at its lowest

b. At the profit-maximizing price, marginal cost is at its lowest. c. At the profit-maximizing price, average total cost is rising. d. At the profit-maximizing price, average total cost exceeds marginal cost.