Just after the terrorist attack on September 11, 2001, the Fed stood ready to lend financial institutions funds. When the Fed did this, it was acting in its role of lender of last resort
a. True
b. False
Indicate whether the statement is true or false
True
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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; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
If 10 workers can produce 1,500 units of output and 11 workers can produce 1,600 units of output, then the average product of 11 workers is
A) 1,600 units. B) 1,500 units. C) 145.5 units. D) 100 units. E) 136.4 units.
Why may investors buy a Treasury bill with a negative real interest rate?
A) fear of rising inflation B) concern about high yields on other bonds C) fear of default by the U.S. government D) concern about the high default risk of alternative investments
If an economy has been operating below its potential output level,
a. frictional unemployment is too high b. more individuals should begin entering the labor force c. the government should create more jobs d. unemployment is likely rising. e. the production possibilities frontier will shift