Which of the following statements is correct?
A. The long-run supply curve for a purely competitive increasing-cost industry will be
upsloping.
B. The long-run supply curve for a purely competitive increasing-cost industry will be perfectly
elastic.
C. The long-run supply curve for a purely competitive industry will be less elastic than the
industry's short-run supply curve.
D. The long-run supply curve for a purely competitive decreasing-cost industry will be
upsloping.
Answer: A
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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
Suppose that, initially, the nominal interest rate is 6 percent and the inflation rate is 3 percent. If the inflation rate increases to 6 percent, what will be the new nominal interest rate?
A) 6 percent B) 1 percent C) 11 percent D) 9 percent
Which of the following statements accurately describes the Fed's control of discount policy?
A) It controls discount policy more completely than it controls open market operations. B) It must abide by discount rates set by Congress. C) It controls discount policy less completely than it controls open market operations. D) It controls discount policy completely, just as it controls open market operations.
The stock market boom during the 1990s
A) boosted consumption relative to income. B) depressed the percentage of disposable income saved by households. C) may explain the behavior of household savings during that decade. D) All of the above.