The inflation rate in January 2009 as measured by the CPI was zero. If inflation were to remain at zero for a long period, what would be the effect on velocity?
A. Velocity will decrease.
B. Velocity will increase.
C. Velocity will remain constant.
D. Velocity is unrelated to interest rates.
Answer: A
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The figure below shows the supply and demand curves for oranges in Smallville. 
At a price of $4 per pound there will be an excess ________ of ________ pounds of oranges per day.
A. demand; 20 B. supply; 20 C. demand; 30 D. supply; 10
The long-run Phillips curve is a vertical line because
A) there is no relationship between the natural unemployment rate and the inflation rate. B) real GDP does not depend on the unemployment rate. C) in the long run, the natural unemployment rate increases when inflation increases. D) the unemployment rate decreases when the inflation rate increases. E) the natural unemployment rate only depends on the inflation rate.
All else constant, an increase in productivity has the effect of causing:
A) the marginal product of labor to increase and no effect on the average product of labor. B) the average product of labor to increase and no effect on the marginal product of labor. C) the marginal product of labor to increase and the average product of labor to decrease. D) both the marginal and average product of labor to increase.
Refer to the table below. What is the profit-maximizing number of quality units for Stuffed Pies to produce?
Stuffed Pies is a frozen calzone manufacturer. The table above summarizes Stuffed Pies' marginal revenue and marginal cost of quality at various quality amounts.
A) 9
B) 11
C) 7
D) 13