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  (01.03 MC) Suppose Firm A can manufacture 100 pens and 20 umbrellas with a unit of labor, and Firm B can manufacture 80 pens and 10 umbrellas with a unit of labor. Which one of the following statements is true?

(04.02 MC) Assume that the inflation-adjusted interest rate is 4% and that the expected rate of inflation is 5%. What is the interest rate charged by banks on loans?

(04.05 MC) How does inflation influence the interest rate and the demand for money in the economy?

(03.05 MC) When the economy is in a short-run equilibrium with the price level at PL0 and real output at Y0, which of the following must be true?

(05.04 MC) Which of the following best explains the difference between a government debt and a budget deficit?

(05.02 MC) The graph below shows a shift in the short-run Phillips curve (SRPC) of an economy, due to an increase in input prices in the market.Which of the following is true in this scenario?

(06.06 MC) Assume that the real interest rate falls in Country Y. Which of the following will occur?

(05.03 MC) Assume that the money supply increases at a rate that exceeds the long-run growth of real GDP. Which of the following should occur?

(05.05 HC) Use the graph to answer the question that follows.Which of the following actions could lead to the change shown in the graph?

(05.03 MC) If the money supply in an economy is increased by 5%, the velocity of money is constant, and output is growing at 3%, then