Refer to Figure 17-6. If firms and workers have rational expectations, an expansionary monetary policy will cause the short-run equilibrium to move from
A) point A to point B.
B) point C to point A.
C) point A to point C.
D) point B to point A.
E) point B to point C.
C
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Which of the following statements is a positive statement?
A) Our country must increase military spending. B) There should be a computer in every elementary school classroom. C) We need to spend less on luxury items for the wealthy, and more on necessities for the less fortunate. D) Online shopping increased by 50 percent this Christmas season. E) Too many people are unemployed.
The change in consumption divided by a change in income is defined as
a. the marginal propensity to consume b. autonomous consumption c. the consumption function d. Keynes's absolute income hypothesis e. transitory consumption
Using Figure 1.4, you can tell that 
A. there is unemployment. B. there is constant opportunity cost. C. the technology does not exist to produce 9 units of soda and 3 units of pizza. D. the technology does not exist to produce 6 units of soda and 2 units of pizza.
Explain the "vicious-circle-of-poverty" hypothesis
What will be an ideal response?