the negative GDP gap were equal to 4% of the potential GDP, Okun's law suggests that the actual unemployment rate would exceed the natural rate of unemployment by:
A. One percentage point
B. Two percentage points
C. Three percentage points
D. Four percentage points
B. Two percentage points
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Refer to the figure below where the nominal interest rate equals 6% and the money supply equals 600. If the Federal Reserve wants to raise the interest rate to 8%, it must ________ the money supply to ________. 
A. increase; 400 B. decrease; 400 C. increase; 800 D. decrease; 800
A change in the price of one good results in a rotation of the budget line around the point at which the consumer is currently consuming, so that it is steeper or flatter.
Answer the following statement true (T) or false (F)
Because most asset yields are affected in a systematic way by economic conditions, most securities in portfolios
A) have a covariance greater than zero. B) have negative yields. C) have covariance greater than one. D) increase in risk as new assets are added.
If Slick Shades, a sunglasses manufacturer, merges with Best Lens, a lens manufacturer, and the combined firm is able to reduce the number of human resource departments from two to one, the merger created ________.
A) a hold-up problem B) synergies C) technological interdependencies D) managerial diseconomies