Assume the price of good Y with its quantity measured on the vertical axis is $20 and the price of good X with its quantity measured on the horizontal axis is $5. If the consumer's budget is $100, then the absolute value of the slope of the budget line is:
A. 100.
B. 20.
C. 1/4.
D. 4.
Answer: D
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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
How would the Fed's reduction of the reserve ratio requirement affect the money supply?
What will be an ideal response?
John increases his consumption of Good X and Good Y when his income increases. For John
A) Good X and Good Y are substitute goods. B) Good X and Good Y are complement goods. C) Good X is an inferior good. D) Good X and Y are normal goods
Gross Domestic Product is counted using two methods: one which counts all the ways people ________ money and another which counts all the ways people ________ money.
A. earn; spend B. spend; save C. loan; borrow D. earn; save