Economic studies conducted in industrially advanced countries suggest there is:
A. A positive relationship between the degree of independence of the central bank and the size of the average annual rate of inflation
B. An inverse relationship between the degree of independence of the central bank and the size of the average annual rate of inflation
C. No relationship between the degree of independence of the central bank and the size of the average annual rate of inflation
D. A positive relationship between the degree of independence of the central bank and the size of the central bank
B. An inverse relationship between the degree of independence of the central bank and the size of the average annual rate of inflation
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
Reported GDP increases when, in fact, total production is unchanged when I. there is a shift from household production to market production. II. a previously illegal activity is legalized
A) I only B) II only C) neither I nor II D) both I and II
Ceteris paribus, a 10 percent increase in income results in a 50 percent decline in the quantity of potatoes purchased. This implies potatoes can be categorized as _____
a. complements b. substitutes c. inferior goods d. normal goods e. luxury goods
The government is running a budget deficit if:
A. government spending is greater than tax revenue. B. tax revenue is greater than government spending. C. tax revenue is greater than consumption spending. D. tax revenue is greater than investment spending.