Refer to the figure below. Based on the diagram, the nominal interest rate equals ________ and the money supply equals ________. 
A. 7%; 300
B. 5%; 500
C. 1%; 500
D. 3%; 700
Answer: B
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When a firm produces output,
A) The value of the output produced is included in GDP B) The firm's output contributes to GDP only to the extent that there is value-added. C) The firm's output will not count as GDP if it is stored as inventory. D) The firm's output will not count as GDP if it is exported.
Which of the following is an appropriate fiscal policy prescription for the government to follow?
A. Deficit reduction during a recession. B. Deficit reduction during a war. C. Deficit reduction when there is excess AD. D. Deficit expansion in an inflationary gap.
Suppose Colin brews beer and makes cheese. If Colin can increase his production of beer without decreasing his production of cheese, then he is producing at an:
A. inefficient point. B. unattainable point. C. efficient point. D. ideal point.
According to one research study focusing on Indonesia, actions by nongovernmental organizations are ___________ than importing countries' threats to raise tariffs.
a. less effective in raising wages and limiting declines in employment b. more effective in raising wages and limiting declines in employment c. less effective in raising wages but more effective in limiting declines in employment d. more effective in raising wages but less effective in limiting declines in employment