Under a floating exchange rate system with mobile international capital, it is always true that current account
A. deficit + capital account surplus = trade deficit.
B. surplus ? capital account surplus = trade deficit.
C. surplus + capital account deficit = 0.
D. surplus ? capital account surplus = 0.
Answer: 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; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
Which of the following methods is not used to calculate GDP?
A. The sum of all the final goods and services produced by a country’s resources B. The sum of all factor payments plus depreciation and indirect business taxes C. The sum of all values added at each stage of production D. The sum of all spending on final goods and services
Which of the following is an example in which "the big tradeoff" can occur?
A) The government redistributes income from the rich to the poor. B) Ford increases the price of a pickup truck. C) A basketball player signs a $5 million contract. D) A college lowers tuition. E) The price of personal computers falls year after year.
What stage of the business cycle immediately follows the trough?
a. Peak. b. Expansion. c. Recession. d. Depression.