Refer to the information provided in Figure 15.4 below to answer the question(s) that follow. 
Figure 15.4 Refer to Figure 15.4. In the long run in this monopolistically competitive industry,
A. some firms will leave the industry until the remaining firms break even economically.
B. product supply will increase so prices will go up.
C. some firms will enter the industry and industry profits will increase.
D. all firms will leave the industry.
Answer: A
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Let C = 800 + 0.6y and I = 100. Assume no government or foreign sectors. If investment decreases by 40, the equilibrium output decreases by a total of
A) 800. B) 480. C) 100. D) 25.
As of July 2012, the 12 month CPI inflation rate was 1.4 percent and the 12 month core CPI inflation rate was 2.1 percent. The difference between these two measurements of inflation indicates
A) prices for food and fuel grew less rapidly than prices for other goods. B) prices for food and fuel grew more rapidly than prices for other goods. C) the underlying inflation rate was lower than the overall inflation rate. D) hyperinflation.
If inflation in Russia is higher than it is in the United States,
A) the value of the dollar will rise in the long run. B) the purchasing power of the ruble in buying Russian goods will rise relative to the dollar. C) the value of the ruble will rise in the long run. D) Both A and C are correct.
The FOMC finally moved to ________ on January 25, 2012, when it issued its "Statement on Long-Run Goals and Monetary Policy Strategy."
A) inflation targeting B) zero inflation policy C) "just do it" policy D) monetary targeting