When the Fed lowers the federal funds rate, which of the following economic variables responds most slowly?
A) other short-term interest rates
B) the inflation rate
C) consumption expenditure
D) the long-term real interest rate
E) the supply of loanable funds
B
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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; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
A decrease in the unemployment rate will shift the production possibilities frontier outward from the origin.
Answer the following statement true (T) or false (F)
What are the major problems that will tend to arise if there are legal limits on the movement of prices?
A. Favoritism and corruption of officials and market participants B. Unenforceability of laws and higher costs of transactions C. Increasing restrictions to enforce the laws D. Misallocation of resources as prices no longer correspond to costs E. All of these responses are correct.
According to the Clayton Act,
a. lawyers are given an incentive to reduce the number of cases involving cooperative arrangements. b. individuals can sue to recover damages from illegal cooperative agreements. c. the government was able to incarcerate the CEO of a firm for illegal pricing arrangements. d. private lawsuits are discouraged.