Mortgage defaults are likely to rise when ________
A) wage rates rise B) unemployment falls
C) investment increases D) consumption falls
D
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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
Using the table above, if the current market value of the dollar is 125 francs per dollar
A) investor A expects dollar appreciation, but B and C expect depreciation. B) investor A expects dollar depreciation, but B and C expect appreciation. C) all three investors expect the dollar to appreciate. D) all three investors expect the dollar to depreciate.
Monetarists believe in a relatively unstable __________ curve, and thus recommend a monetary policy targeting the __________
A) IS; money supply B) IS; interest rate C) LM; money supply D) LM; interest rate
Government purchases, as a component of GDP include all except:
A. goods and services bought by all levels of government. B. both consumption- and investment-type goods bought by the government. C. include services the government pays for. D. goods purchased by government from foreign countries.