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; B; C
B. Falling; A; C
C. Falling; A; B
D. Rising; A; C
Answer: D
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Potential GDP is always greater than real GDP in an economy
Indicate whether the statement is true or false
In a country with floating exchange rates, the increase in the real income is the result of a(n) ________ in the money stock when capital mobility is ________
A) increase; high or low B) decrease; high or low C) increase; high D) decrease; low
A monopsony is an example of:
A. a buyer holding market power. B. a seller holding market power. C. an efficient market with no market power. D. a single seller holding all market power.
My neighbor ________ is an example of an external benefit.
A. smoking a cigarette in my presence B. dumping hazardous chemicals on a stream that passes through my property C. playing loud music on his radio that I can hear D. keeping the leaves from his trees away from my yard