Taxes and transfer payments automatically reduce fluctuations in real GDP and thereby stabilize the economy without any need for decisions from Congress or the White House.
Answer the following statement true (T) or false (F)
True
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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; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
Because it is a machine, a personal computer should be treated as a fixed input in the typical firm's short-run production function
Indicate whether the statement is true or false
The higher the interest rates
a. the more value individuals place on future dollars b. the more value individuals place on current dollars c. individuals do not place any importance on either current or future dollars d. does not affect the investment strategy
If a bank has actual reserves of $40,000 and a 20 percent reserve requirement, then the maximum amount of checkable deposits the bank can have if excess reserves are zero is
a. $100,000. b. $80,000. c. $300,000. d. $20,000. e. $200,000.