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
Answer: B
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Holding all else constant, a decrease in consumption taxes, such as sales taxes or a VAT, will ________ aggregate expenditure and ________ employment
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
The National Banking System under the Bank Act of 1863 created a banking system comprised of a mixture of
(a) special state charters. (b) nonchartered private banks. (c) free banks. (d) all of the above.
The reason why consumers may not fight back against trade policy, even though they may be the biggest losers from trade, is because it is easier to organize a ______ group of people around a narrow interest versus a ______ group that has diffuse interests.
a. small; small b. large; large c. small; large d. large; large
Why does the government not have to repay debt, as do private individuals?
a. Because the government can ignore creditors and refuse payment. b. Because the government, as a dictatorship, is unresponsive to demands for repayment. c. Because the government has no debt, it owes it to itself. d. Because the government does not have a finite life, as do individuals.