Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C
B. Falling; A; C
C. Falling; A; B
D. Rising; A; C
Answer: D
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The law of demand states that, all else held constant,
A. price and quantity demanded are inversely related. B. the larger the number of buyers in a market, the lower the product price will be. C. consumers will buy more of a product at high prices than at low prices. D. price and quantity demanded are directly related.
How many of the following business cycle facts can be explained if the primary cause of business cycles is temporary changes in total factor productivity: procyclical consumption, procyclical investment, procyclical employment, and procyclical real
wages? A) one B) two C) three D) four
Suppose that a college student receives an offer for a summer internship with a stock brokerage firm. Unfortunately for the student, the internship is unpaid. Is it ever economically beneficial to accept an unpaid job?
a. Yes, because the experience gained during the internship would increase the student's human capital. b. No, because the opportunity cost is too high. c. No, because the student is signaling to future employers that he or she is willing to accept low wages. d. Yes, because accepting an unpaid job signals to future employers that the student has stable personal finances.
For this question, assume that the economy is operating in a fixed exchange rate regime and that perfect capital mobility exists. Given this information, which of the following will occur?
A) The domestic and foreign interest rates must be equal. B) The central bank cannot use monetary policy to affect domestic output. C) An expansionary fiscal policy will require that the central bank increase the money supply. D) all of the above E) none of the above