Who among the following is included in the labor force?
A. A retired commander of the armed forces.
B. A man doing 10 years in prison for armed robbery.
C. The president of Microsoft.
D. A hardworking homemaker who does not want to be employed outside the home.
Answer: C
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A reverse repurchase agreement of government securities by the Fed
A) permanently increases bank reserves. B) temporarily increases bank reserves. C) permanently reduces bank reserves. D) temporarily reduces bank reserves.
Deflation will
A) increase aggregate demand. B) increase the quantity of real GDP demanded. C) decrease aggregate demand. D) decrease the quantity of real GDP demanded.
Refer to the information provided in Figure 8.4 below to answer the question(s) that follow. 
Figure 8.4 Refer to Figure 8.4. The marginal cost of the third microwave oven is
A. $50. B. $166.67. C. $300. D. indeterminate from this information.
The negative impact of the loss of value of collateralized assets is due to
A) asymmetric information. B) Ricardian Equivalence. C) limited commitment. D) financial intermediation through banks.