Fine tuning the economy with fiscal policy is:
A. difficult because the government lacks important information about the economy.
B. difficult because economists have not developed any theoretical models of the macroeconomy.
C. relatively simple because the political process usually works smoothly and without significant lags.
D. relatively simple because the government has access to the best information available.
Answer: A
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In the Ricardian model, comparative advantage is likely to be due to
A) scale economies. B) home product taste bias. C) greater capital availability per worker. D) labor productivity differences. E) political pressure.
Which of the following are legal tender?
a. A check b. A Federal Reserve note c. A bank note issued by a private bank d. A credit card e. A traveler's check
Price controls are usually enacted in response to
a. popular opinion. b. governmental studies. c. scholarly research on the effects of high prices. d. laws enacted in other countries. e. All of the above are correct.
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