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
Answer: B
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Suppose you borrow $2,000 for one year and at the end of the year you repay the $2,000 plus $110 of interest. If the expected inflation rate was 2.2% at the time you took out the loan, what was the real interest rate you paid?
A) 2.2% B) 3.3% C) 5.5% D) 7.7%
Ronald Coase's study, "The Nature of the Firm," argued that firms are formed to take advantage of situations in which hierarchies are more efficient than markets
a. True b. False
The optimal level of resource use comes when
a. MRP exceeds input price. b. MRP is less than input price. c. MRP equals input price. d. use of the resource exhausts the producer's funds.
Which of the following is NOT a correct statement?
A. The country has 12 Federal Reserve districts. B. The Federal Open Market Committee carries out open market operations. C. A majority of private banks are not part of the Federal Reserve System. D. The Fed chairman is appointed by the president for 14 years. E. The Senate ratifies the president's appointment of the chairman of the board of governors of the Fed.