The integration of expectations into macroeconomic analysis indicates that
a. fiscal policy is more potent than monetary policy.
b. monetary policy is more potent than fiscal policy.
c. once people come to expect a given rate of inflation, the inflation will neither stimulate real output nor reduce unemployment.
d. higher rates of inflation will lead to lower rates of unemployment in the long run but not in the short run.
C
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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; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
Suppose that the nominal quantity of money is $200 billion and the value of nominal GDP is $1 trillion. It must be the case that
A) the economy is suffering from inflation. B) the average price paid for a "typical" good is $5. C) there will be a shortage of money balances in the economy. D) the velocity of circulation is 5.
If the percentage increase in the quantity supplied is smaller than the percentage increase in the price, the supply:
A. is elastic. B. is inelastic. C. is perfectly elastic. D. is unit elastic.
Microeconomics deals with which of the following?
a. the total output of an economy b. the measurement of a nation's inflation rate c. how producers and consumers interact in individual markets d. how tax policies influence economic growth e. whether wage growth will outpace inflation in the coming year