When the coupon rate on newly issued bonds ________ relative to older, outstanding bonds, the market price of the older bond ________
A) increases; falls in the secondary market
B) increases; rises in the secondary market
C) decreases; falls in the secondary market
D) decreases; falls in the primary market
Answer: A
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
The long run is
A) over five years. B) the time period in which all factors of production can be varied. C) when all factors of production are fixed. D) over one year.
Recall the Application about the response of bike messengers in Zurich to a change in wages to answer the following question(s).Recall the Application. A study of bike messengers in Zurich showed that as the messengers' revenue share increased from 40% to 50%, their:
A. efforts decreased but their incomes still increased. B. efforts increased but their incomes still decreased. C. efforts decreased causing their incomes to decrease. D. efforts increased causing their incomes to increase.
When an individual quits his job and decides to look for a new job immediately, the labor-force participation rate
A. stays the same. B. increases. C. decreases. D. may increase or decrease, depending on the length of time he/she stays at home.