The government regulates the banking industry by
a. conducting frequent audits and examinations.
b. limiting the kinds of assets that a bank may own.
c. limiting the quantity of some kinds of assets that a bank may own.
d. All of the above are correct.
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
According to the AS-AD model,
A) the equilibrium is where the AS curve crosses the AD curve, but the amount of real GDP at this point is not always equal to potential GDP. B) the aggregate quantity supplied is typically greater than the aggregate quantity demanded, thereby leading to unemployment. C) the aggregate quantity demanded is typically greater than the aggregate quantity supplied, thereby leading to inflation. D) changes in the amount of potential GDP is the only factor that shifts both the aggregate supply curve and the aggregate demand curve. E) the AS curve is always equal to potential GDP.
If the economy is operating at a point at which short-run aggregate supply is horizontal, then
A) real GDP cannot expand. B) real GDP cannot contract. C) increases in aggregate demand do not increase the price level. D) then increases in aggregate demand do not increase real GDP.
Tying agreements:
A. establish common boards of directors for previously competing firms. B. obligate a purchaser of product X to also buy product Y from the same seller. C. allow manufacturers to specify the retail prices of their products. D. prohibit firms from selling their products outside of specified geographic areas.