If the prices of productive substitute goods decreased and productive technology improved at the same time, as a result:
a. prices would rise and there would be and an indeterminate effect on quantities exchanged.
b. prices would fall and there would be and an indeterminate effect on quantities exchanged.
c. prices would rise and larger quantities would be exchanged
d. prices would fall and larger quantities would be exchanged.
d
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If the single-input producer choice set is convex, the marginal product of labor curve must have a negative slope that is getting steeper with increases in labor input.
Answer the following statement true (T) or false (F)
The value of the discount weight used to translate utils into current utils is:
A) one. B) less than one. C) greater than one but less than two. D) greater than one but less than three.
Suppose, before the Asian financial crisis, the Thai baht was fixed against the dollar at a rate of 26 bahts for one U.S. dollar. If the exchange rate were allowed to float freely, the market would then set the rate at 35 bahts for one dollar. Under these circumstances, we say that the baht was:
a. about to appreciate. b. fixed below its par value. c. overvalued. d. undervalued. e. revalued.
Based on the given figure, the economy is initially at point A on the monetary policy reaction function (RF1) and the aggregate demand curve (AD1). The actual rate of inflation is ?' and the Federal Reserve's target inflation rate is ?*1. 
If the Federal Reserve raises its target inflation rate to ?*3, then the Federal Reserve's monetary policy reaction function will ________ and the aggregate demand curve will ________.
A. shift to RF3; shift to AD2 B. shift to RF2; shift to AD3 C. shift to RF2; shift to AD2 D. shift to RF3; shift to AD3