If an economy is operating at potential output:
A. any surplus would be a structural surplus.
B. a budget surplus is impossible.
C. the budget must be in surplus.
D. any surplus would be a cyclical surplus.
Answer: A
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
In the United States, the lender of last resort is
A) Fannie Mae. B) the Federal Reserve. C) the Federal Deposit Insurance Corporation. D) Securities and Exchange Commission.
Boundary setting refers to
A. managers requesting permission to ratify every decision made by an empowered worker. B. employees seeking approval for every decision from managers. C. workers setting up rules of empowerment that might influence their decision-making authority. D. managers preratifying certain decisions made by empowered workers within a certain range, while still maintaining supervisory control.
Which of the following generates demand for foreign currencies?
A. Exports from the United States to foreign countries. B. The purchase by foreigners of bonds issued by the U.S. government. C. Expenditures by Americans traveling abroad. D. Transfers of money from foreigners to relatives in the United States.