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 phrase "smart for one, but dumb for all" refers to the idea that the individual pursuit of self-interest:
A. always leads to an efficient outcome. B. doesn't always lead to an efficient outcome. C. only leads to an efficient outcome when everyone is well-informed. D. never leads to an efficient outcome.
To shift a country's production possibility frontier outward, it is necessary to
What will be an ideal response?
Given a 25 percent reserve ratio, assume the commercial banking system is loaned up. Now assume the reserve ratio is reduced to 20 percent. As a result of this reduction:
A. we can expect bank lending and bank profits to decline. B. each dollar of bank reserves will now support a maximum of $5 of checkable deposits. C. the banking system must now reduce outstanding loans by 5 percent. D. the banking system can now increase lending by 5 percent.
Refer to the information provided in Figure 3.14 below to answer the question(s) that follow.
Figure 3.14Refer to Figure 3.14. The market for sunglasses is in equilibrium at a price of ________ and a quantity of ________ sunglasses.
A. $60; 450 B. $30; 300 C. $30; 600 D. $90; 300