In the AS/AD model, higher interest rates are produced by:
A. an expansionary monetary policy.
B. a steady-as-you-go monetary policy.
C. a contractionary monetary policy.
D. an activist monetary policy.
Answer: C
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Which of the following is an explanation for why the AD curve slopes downward?
A. The interest rate effect. B. The laissez faire effect. C. The cost effect. D. The profit effect.
Refer to the information provided in Table 22.2 below to answer the question(s) that follow.
Table 22.2
Refer to Table 22.2. The total number of people unemployed is
A. 13 million. B. 15 million. C. 17 million. D. 20 million.
The following graph depicts demand. 
At point A, demand is:
A. unit elastic. B. inelastic. C. elastic. D. perfectly elastic.
Suppose an ocean liner sinks and the passengers are stranded on a lush tropical island. Which of the following could most likely be used as money in the economy that develops among the survivors?
a. The life jackets they put on when leaving the ship b. The beads from the necklaces that were given out as party favors on the night the ship sank c. The coconuts growing on the island d. The fish in the sea around the island e. The sand on the island's beaches