Suppose the Fed announced that it has chosen to accept a temporary period of above-target inflation. Assuming that the announcement is seen as credible, this will tend to increase inflationary expectations, which will result in
A) the AD curve shifting to the right.
B) the AD curve shifting to the left.
C) the AS curve shifting to the right.
D) the AS curve shifting to the left.
D
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If a firm can earn a profit stream of $50,000 per year for 10 years, that profit stream is worth
A) more than $500,000 today. B) $500,000 today. C) less than $500,000 today, but a positive amount. D) nothing today E) some amount, but whether it is more, less or the same as $500,000 cannot be determined.
Describe some of the steps used to combat inflation. What are their side-effects?
Refer to the figure below. At P = 8 and Q = 4, D1 is ________ elastic than D2, which is shown graphically as D1 being ________ D2. 
A. more; steeper than B. more; flatter than C. less; steeper than D. less; flatter than
When total product is diminishing, marginal product is:
A. constant. B. positive and increasing. C. positive and decreasing. D. negative.