Harry decides to buy shares of Oscorp Inc based on the rumor that the price of the shares will rise in the future. This illustrates the theory of adaptive expectations
a. True
b. False
Indicate whether the statement is true or false
False
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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
Suppose Hanna spends her entire budget buying bagels and cups of coffee each day. Also, suppose the marginal utility of her last bagel is 100 and the marginal utility of her last cup of coffee is 200
If the price of a bagel is $4 and the price of a cup of coffee is $2, then A) Hanna needs to decrease her consumption of bagels to maximize her utility. B) Hanna needs to increase her consumption of bagels to maximize her utility. C) Hanna should buy half as many bagels as coffee in order to maximize her utility. D) bagels must provide more total utility than coffee.
In the Ricardian model, comparative advantage is likely to be due to
A) scale economies. B) home product taste bias. C) greater capital availability per worker. D) labor productivity differences. E) political pressure.
If policies of the Fed cause the money supply to increase, and velocity is held constant, the expected outcome would be: a. P Q would increase, and the general price level would increase if Q remained constant. b. P Q would decrease, and the general price level would decrease if Q remained constant. c. P Q would decrease, and the general price level would increase if Q increased
d. insufficient information is available to arrive at a conclusion.