In the long run, the exchange rate between two currencies is
A) fixed.
B) influenced by purchasing power parity.
C) undefined.
D) constant.
E) determined so that the current account balance equals zero.
B
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
The federal personal income tax was designed to be a:
a. progressive tax. b. regressive tax. c. proportional tax. d. poll tax. e. payroll tax.
Suppose the Congress enacts a 5 percent decrease in annual military expenditures. Other things equal, this can be associated with:
a. a change in the slope of the aggregate demand curve. b. a leftward shift of the aggregate demand curve. c. a rightward shift of the aggregate demand curve. d. a movement down along the aggregate demand curve. e. a movement up along the aggregate demand curve.
Evidence of differences in the average wages of black workers compared to white workers
a. does not alone provide conclusive evidence of discrimination. b. clearly indicates differences in productivity between races. c. is seldom used to provide evidence of discriminatory bias. d. clearly indicates discrimination on the basis of race.