12. When two goods are perfect substitutes, the indifference curve is(A) a horizontal straight line.
13. The tool most often used by the Fed to control the money supply is (A) changing reserve requirem
16. In the economy of Talikastan in 2015, consumption was $3000, exports were $1200, GDP was $6300,g
17. In the long run the unemployment rate equals(A) zero.(B) the cyclical rate of unemployment.(C) t
18. If a country’s purchases of foreign assets exceeds foreign purchases of domestic assets, that co
19. According to classical macroeconomic theory, changes in the money supply affect(A) nominal varia
20. Most economists believe that money neutrality(A) does not hold in the short run. (B) does not ho
2. Most governments subsidize basic education because(A) there are external costs associated with we
3. If a bank has $10 million of checkable deposits, a required reserve ratio of 20 percent, and it h
4. If the purchasing-power parity theory is true, then:(A) the net exports schedule is very steep.(B
5. Suppose that when the price of good X falls from $10 to $8, the quantity demanded of good Y rises
6. Analysis of the short-run Phillips curve suggests that policymakers who want to reduce unemployme
7. In the Solow growth model, if investment exceeds depreciation, the capital stock will ______ ando
8. When profit-maximizing firms in competitive markets are earning profits,(A) market demand must ex
9. If a tax is imposed on a market with inelastic supply and elastic demand, then(A) buyers will bea
11. In the case of unions, the conflict of interest between different groups of workers results in i
13. Under which of the following conditions would the interdiction of illegal drugs result in a decr
15. Two firms are considering going out of business and selling their assets. Each considers what ha