Assume leisure is an inferior good instead of a normal good. The income effect of a wage decrease will lead to a ________ demand for leisure and a ________ labor supply.
A. higher; lower
B. lower; higher
C. lower; lower
D. higher; higher
Answer: A
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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; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
Auditors working for a large accounting firm are often away from the office. When they are in the office, they are allowed to use any desk that is available. Which method is used to allocate desks?
A) lottery B) first-come, first-served C) command D) contest E) sharing equally
Describe some of the potential problems with using expansionary fiscal policy
What will be an ideal response?
Vault cash is a(an)
A) liability of the Fed and is counted as reserves. B) asset of the Fed and is counted as reserves. C) liability of the Fed and is not counted as reserves. D) asset of the Fed and is not counted as reserves.