Changes in taxes and spending by the executive and legislative branches of a country's government that can be used to either stimulate or restrain the economy are called:
A) monetary policy.
B) fiscal policy.
C) foreign policy.
D) exchange rate policy.
B
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
The income effect of a price increase for a Giffen good outweighs the substitution effect
Indicate whether the statement is true or false
In the above figure, when disposable income is greater than 600
A) saving is negative. B) the MPC is greater than 1. C) saving is positive. D) the MPS is negative.
If your bank pays you 6% interest on a savings account and inflation is 2%, your approximate real rate of interest is
A) 2%. B) 4%. C) 8%. D) 12%.