The Fed would engage in ____ it wanted to address an inflationary gap
a. expansionary monetary policy
b. contractionary monetary policy
c. contractionary fiscal policy
d. expansionary fiscal policy
b
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Refer to the figure below. If the price of a latte increases from $2.00 to $2.50: 
A. the change in total expenditure, if any, would depend on the supply curve. B. total expenditure would stay the same. C. total expenditure would increase. D. total expenditure would decrease.
Suppose that there are two countries (Ireland and Belgium) negotiating the government debt criteria for the Eurozone. Ireland has a high ratio of government debt to GDP; Belgium has a low ratio of debt to GDP. Which country is likely to prefer a higher inflation target?
A) Belgium, because the real value of its government debt will approach zero faster than Ireland's over time B) Ireland, because higher inflation will cause larger absolute reductions in the real value of its government debt than in Belgium C) It makes no difference because high rates of inflation will have proportional effects on the real debt of both countries. D) both, because each wants to see its real government debt decline
A decrease in aggregate supply means:
A. both the real domestic output and rises in the price level would become greater. B. the real domestic output would increase and rises in the price level would become smaller. C. the real domestic output would decrease and the price level would rise. D. both the real domestic output and the price level would decrease.
The table above shows the demand and total cost schedule for a monopolist hotel. What price should the monopolist charge if it is a single-price monopoly that maximizes its profit?
A) $171 B) $161 C) $151 D) $141