The various lender-of-last-resort programs implemented by the Fed in response to the financial crisis of 2007 and 2008:
A. severely depleted the assets of the Federal Reserve.
B. have been little used, and therefore are ineffective.
C. increased the moral hazard problem by limiting losses from bad financial decisions.
D. were designed to offset the moral hazard created by the TARP and other bailout programs.
C. increased the moral hazard problem by limiting losses from bad financial decisions.
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
If a nonbinding price floor is imposed on a market, then the
a. quantity sold in the market will decrease. b. quantity sold in the market will stay the same. c. price in the market will increase. d. price in the market will decrease.
The macroeconomic policy planner’s job is made difficult because of
A. inaccurate multiplier estimates. B. timing problems. C. disagreements over potential GDP. D. uncertain forecasts. E. All of the above are correct.
According to the hypothetical economy in Figure 5.2, real GDP differs from nominal GDP from 1980 to 2000 because
A. Inflation caused the dollar value of output to decrease. B. Population growth exceeded output growth. C. Price level increases caused real GDP to increase. D. Inflation caused the dollar value of output to increase.