Each row represents a point on a country’s PPF. Point Bushels of Beans Bushels of Carrots A 0 50 B 10 45 C 20 35 D 30 20 E 40 0 What is the opportunity cost of one bushel of beans if the country moves from Point C to Point D?

Automatic Fiscal Policy is often referred to the “automatic stabilizers,” because tax receipts ___, and spending on needs-tested programs ____ during a recessionary gap.

True or False: The terms “Extraordinary Monetary Policy” and “Quantitative Easing” refer to the extraordinarily large open-market purchases conducted by the Federal Reserve.

True or False: A shortage can be eliminated by falling prices.

A recent study claimed that red wine may cause heart disease. As a result, the equilibrium price of red wine ______, and the equilibrium quantity of red wine ______.

When Congress passes a large series of tax cuts into law, it is conducting ____, and this is more desirable in the presence of a ____.

For a PPF, increasing opportunity costs imply that…

True or False: When Professor Rush walks into Professor Knight’s office, he sings Adele’s Hello to announce his arrival. All answers to this question will be accepted.

Suppose that depository institutions do NOT hold excess reserves, and that the reserve requirement is 12.5%. If the Federal Open Market Committee wishes to decrease the money supply by $200 billion, it should initiate ____ worth of open-market ____.

In the figure above, decreasing the capital gains tax on savers could result in a movement from____ in the short run.