A key reason that most people did not anticipate the severity of the recession of 2007-2009 is that
A) they thought the Fed would reduce the target for the federal funds rate to a lower level.
B) they did not believe that the federal government would actually bail out large financial institutions.
C) they failed to see the financial crisis coming.
D) they were more worried about rising inflation than about falling real GDP.
C
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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
Which of the following has been offered as a possible explanation to the evidence that the exchange-rate pass-through effect to import prices has been declining in developed economies?
A) That foreign exporters have been increasingly adopting "pricing-to-market" policies. B) That transaction costs have decreased in recent years. C) That global leaders have encouraged this phenomenon. D) That the share of imports with prices more sensitive to exchange rates has been increasing.
An increasing-cost industry is so named because of the positive slope of which curve?
A) Each firm's short-run average cost curve B) Each firm's short-run marginal cost curve C) Each firm's long-run average cost curve D) Each firm's long-run marginal cost curve E) The industry's long-run supply curve
The productivity table given below shows how many bushels of either wheat or rice can be produced in India and Canada with 1 unit of input.CountryWheat (bushels)Rice (bushels)India1010Canada4020To achieve gains from specialization and trade
A. India should export wheat to Canada and import Canadian rice. B. India should export rice to Canada and import Canadian wheat. C. Canada should produce both wheat and rice and not trade with India. D. India cannot offer any benefits to Canada from trading with her.