Suppose there is a surplus in the money market
a. This could have been created by an increase in the money supply. The value of money will rise.
b. This could have been created by an increase in the money supply. The value of money will fall.
c. This could have been created by a decrease in the money supply. The value of money will rise.
d. This could have been created by a decrease in the money supply. The value of money will fall.
b
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
Based on the data in the above table, to assure that the efficient amount is produced the government can
A) subsidize the suppliers $8 per unit. B) subsidize the suppliers $2 per unit. C) tax suppliers $2 per unit. D) tax suppliers $8 per unit.
In the United States, antitrust enforcement focuses on
A) the profitability of the leading firms in an industry. B) the degree of market concentration within a market. C) the average level of prices charged by firms. D) the price-cost margin of an industry.
Suppose that you allow yourself $50 per month to spend on compact disks. You spend exactly this much every month regardless of the price of compact disks. Therefore, your demand for CDs
a. is elastic b. is inelastic c. is unit elastic d. cannot be characterized unless we know the price of a disk e. cannot be characterized unless we know the price and quantity of compact disks purchased