Refer to Figure 10.5. A shift from MP1 to MP2 will occur if
A) the Fed decreases its target for the short-term nominal interest rate.
B) the term structure effect increases.
C) the default-risk premium decreases.
D) the expected inflation rate increases.
B
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Use the following supply and demand graph to answer the question below. 
In the graph, line S is the current supply of this product, while line S1 is the optimal supply from the society's perspective. This figure suggests that there is (are)
A. external costs from the production of this product. B. external benefits from the production of this product. C. positive externalities from producing the good. D. currently an underallocation of resources toward producing this good.
Begin with the formula showing how households can divide their income. Then use this formula and the expenditure approach to GDP to show how investment is financed from three sources
What will be an ideal response?
Which of the following is likely to improve a person's income?
a. increased productivity b. investing in human capital c. possessing a special talent or skill d. all of the above
Which of the following is true of the shape of the short-run Phillips curve? a. It is vertical
b. It is horizontal. c. It is downward sloping. d. It is upward sloping.