Disinflation is
A. a decrease in inflation rates.
B. an increase in inflation rates.
C. an increase in prices.
D. a decrease in prices.
Answer: A
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Firms in a small economy planned that inventories would grow over the past year by $300,000. Over that year, inventories actually grew by $400,000. This implies that
A) aggregate expenditure that year was less than GDP that year. B) aggregate expenditure that year was equal to GDP that year. C) there was a planned decrease in inventories that year. D) there was an unplanned decrease in inventories that year.
The disruption to financial markets starting in August 2007 that caused both consumer and business spending to fall
A) shifted the aggregate demand curve to the right. B) shifted the aggregate demand curve to the left. C) shifted the aggregate supply curve to the right. D) shifted the aggregate supply curve to the left.
If the real risk-free interest rate rises, the:
a. Demand curve for real loanable funds rises. b. Demand curve for real loanable funds falls. c. Supply curve of real loanable funds falls. d. None of the above.
The manufacturer of Beanie Baby dolls used quarterly price data for 2005 I - 2013 IV (t = 1, ..., 36) and the regression equationPt = a + bt + c1D1t + c2D2t + c3D3tto forecast doll prices in the year 2014. Pt is the quarterly price of dolls, and D1t, D2t, and D3t are dummy variables for quarters I, II, and III, respectively. 
In any given year price tends to vary from quarter to quarter as follows:
A. PI > PII > PIII > PIV B. PII > PIII > PIV > PI C. PIII > PI > PII > PIV D. PI > PIV > PIII > PII E. PIV > PIII > PII > PI