Jack decided to sell his stock of shares when he heard that the economy was heading for a recession. This illustrates the theory of _____
a. absolute advantage
b. rational expectations
c. adaptive expectations
d. sticky wages
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
If the bid value of a Treasury bond is listed as "112:16", it means that the buyer is willing to pay $1,125 for the bond.
Answer the following statement true (T) or false (F)
As the U.S. population ages, the structure of the demand for food products will change with
A) an increase in the demand for red meat products and a decrease in the demand for fish and poultry. B) an increase in the demand for dairy products and a decrease in the demand for red meat. C) an increase in the demand for fruits, vegetables and fish and a decrease in demand for fried foods, dairy products and items that contain a lot of sugar. D) an increase in the demand for beverages and drinks and a decrease in the demand for solid food.
Consider the following statements when answering this question. I. If no consumer has a kinked demand curve for CDs, then the market demand curve for CDs cannot be kinked either. II
If at a price of $10, every consumer has inelastic demand, then at that price the market demand for CDs will be inelastic too. A) I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) I and II are false.