The assumption made about Real GDP in the simple quantity theory of money produces a ____________________ curve in the AD-AS version of the theory
A) horizontal AD
B) vertical AD
C) horizontal AS
D) vertical AS
D
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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
Let S = y - (100 + 0.5y). Assume no government or foreign sectors. At the equilibrium level of income, y* = 800, the level of saving is
A) 0. B) 50. C) 100. D) 300.
What rule(s) should a firm follow in deciding optimum output for profit maximization?
The chained consumer price index
a. assumes that households purchase the same bundle of goods and services over a lengthy time period. b. adjusts the quantities of the typical bundle purchased each month to reflect the substitution away from goods that have become more expensive. c. reflects changes in the prices of all final goods and services produced domestically by the citizens of a nation during a period. d. will generally result in a higher measured rate of inflation than the regular consumer price index.