(03.07 MC) An economy in long-run equilibrium experiences a significant negative supply shock. If the government takes no action to address this, what would occur in the short run?

(04.01–04.07 HC) For all graphs, be sure to correctly and completely label all axes and curves and use arrows to indicate the direction of any shifts.Assume that an economy is in a short-run macroeconomic equilibrium and experiences a positive demand shock. What will happen to real output and the price level as a result? Explain. Using a correctly labeled graph of the money market, illustrate the impact of the positive demand shock. What will happen to the price of previously issued bonds? Explain. What is one policy action that the central bank could take to offset the change in the nominal interest rate from part (b)? Assume a limited reserves system. Assume that the required reserve ratio is 10 percent. If the central bank wants to decrease the money supply by $60 billion, what is the specific open-market operation (type and minimum value) that the central bank needs to conduct?

(02.05 LC) If the government of a country instituted a policy that led to an unexpected decrease in consumer prices, which of the following groups would inherently benefit?

(01.06 MC) Use the graph to answer the question that follows.The graph for a competitive output market shows demand shifting from D to D′ and supply shifting from S to S′. Which pair of events is consistent with these two changes?

(02.03 MC) An economy’s structural unemployment rate is 2 percent, its frictional unemployment rate is 4 percent, and its cyclical unemployment rate is 3 percent. Based on this data, its natural unemployment rate is ________ and its actual unemployment rate is ________.

(05.06 LC) How is economic growth best described or summarized?

(05.04 LC) Which of the following statements is true regarding the national debt?

(03.07 HC) Use the graph to answer the question that follows.Assume that the economy is in a short-run equilibrium as shown on the accompanying graph. Without government intervention, what adjustment over time can be expected?

(04.01 MC) How does an increase in interest rates affect the opportunity cost of holding money and the repayment to creditors?

(04.07 LC) The equilibrium in the market of loanable funds determines the