The value of the expenditure multiplier in the long run is
a. 1
b. 0
c. -1
d. equal to the MPC
e. equal to the 1/MPC
B
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Suppose that last year the unemployment rate was 5 percent and the inflation rate was 2.5 percent. If the natural rate of unemployment is 5 percent, how do you expect inflation to change?
What will be an ideal response?
Figure 33.2 illustrates Lorenz curves for four different economies. For which economy would lower-income families receive the largest share of total income?
A. A. B. B. C. C. D. D.
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
Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.
Figure 6.5Refer to Figure 6.5. Molly's budget constraint is CD. Molly's income is $200, the price of a DVD is $7.50 and the price of a CD is $10. At point C, she is buying ________ DVDs and ________ CDs.
A. 0; 20 B. 40; 30 C. 20; 0 D. 20; 15