Human capital is
A. the factories and machinery made by workers.
B. the talents, training, and education of workers.
C. the financial resources available to humans for investment.
D. the factories and machinery used by humans in the production process.
Answer: B
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Which of the following would be most likely to increase the demand for money?
a. An increase in the price level b. A decrease in real income c. An increase in the interest rate d. A decrease in the cost of converting other assets into money e. A decrease in the price level
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
When current tax revenues exceed current government expenditures and the economy is achieving full employment:
A. the cyclically adjusted budget has neither a deficit nor a surplus. B. the cyclically adjusted budget may have either a deficit or a surplus. C. the cyclically adjusted budget has a surplus. D. the government is engaging in an expansionary fiscal policy.
Your roommate is having trouble grasping how monetary policy works. Which of the following explanations could you use to correctly describe the mechanism by which the Fed can affect the economy through monetary policy? Increasing the money supply
A) lowers the interest rate, and firms increase investment spending. B) causes people to spend more because they know prices will rise in the future. C) raises the interest rate and consumers decrease spending on durable goods. D) lowers the interest rate, raises the value of the dollar, lowers the prices of exports, and raises net exports.