If the economy is at point A in the Phillips curve graph shown, what prediction would you make for unemployment in the long run?
A. It will decrease.
B. It will increase.
C. It will remain constant.
D. It will explode.
Answer: A
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
If the interest rate is 5 percent, what is the present value of $5,000 five years from now?
What will be an ideal response?
During the financial crisis it was proposed that firms be provided with a tax credit for investment projects. Such a tax credit would
a. raise both the interest rate and the real exchange rate. b. raise the interest rate and reduce the real exchange rate. c. reduce the interest rate and raise the real exchange rate. d. reduce both the interest rate and the real exchange rate.
Explain the difference between a sole proprietorship and a partnership
What will be an ideal response?