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
Answer: B
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The sum of the balances of the three accounts of the balance of payments (the current account, the capital and financial account, and the official settlements account) is
A) positive if there is a balance of trade surplus or negative if there is a balance of trade deficit. B) negative if there is a balance of trade surplus or positive if there is a balance of trade deficit. C) equal to zero. D) positive if there is a balance of trade surplus. E) negative if there is a balance of trade deficit.
Devastating damage resulting from a major earthquake and tsunami will most likely
A) initially move a country to a time path beneath its balanced growth path. B) move a country to a lower point on its balanced growth path. C) shift the balanced growth path for a country to a new, lower level. D) have little to no impact on the short-term growth rate in a country.
The substitution effect of a change in the real interest rate is an example of
A) an intratemporal substitution effect. B) an intertemporal substitution effect. C) an atemporal substitution effect. D) a temporary substitution effect.
Is there a tradeoff between fiscal policy that is timely and fiscal policy that is targeted?
A. No, the video gives several examples of timely fiscal policy that was targeted. B. Yes, because it takes a very long time to decide what the targets should be. C. Yes, because the industries that need help also move the slowest. D. Yes, because it's hard to create targeted fiscal policy quickly.