(02.04 HC) Use the table to answer the question that follows. Year Price of Good A Quantity of Good A Price of Good B Quantity of Good B 1 $10 5 $12 6 2 $15 5 $12 7 The economy produced only two goods with the prices and quantities of each good for year 1 and year 2 shown above. Which of the following is true?

(02.05 MC)This question refers to the following excerpt.”Early American churchmen and churchwomen soon discovered that if they wanted to practice their beliefs unmolested in a diverse society, they had to grant the same right to others. This wisdom did not come easily. Yet over time, along with bickering and competition among denominations, there also were bargains, accommodations, and compromises. In realizing that no single doctrine of faith could dominate Middle Colony society, a heterogeneous people learned, not to cherish their differences, but, at least, to tolerate and live with them.”Source: Patricia U. Bonomi, historian, “Religious Pluralism in the Middle Colonies,” 2008The ideas about religious diversity described in the excerpt were later enhanced by developments such as the

(02.01 MC) Which of the following is true for the gross domestic product?

(02.04 MC) Which of the following is true about the consumer price index (CPI) as an economic indicator?

(02.02 LC)What made the colony of Maryland distinct from the other British colonies?

(04.07 MC) Use the graph to answer the question that follows.Assuming that the economy is initially in equilibrium at rate of interest, ‘R,’ and quantity of loanable funds, ‘Q.’ What will be the new rate of interest and quantity of loanable funds if the marginal propensity to save increases?

(03.09 MC) A progressive tax system is a type of a(n) ________ because it helps increase ________ and maintain aggregate demand during times of economic recession.

(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?

  (04.03 MC) Which of the following statement shows the difference between the monetary aggregates M1 and M2?

(02.04 MC) If the CPI in Year 1 is 120 and in Year 2 is 130, then what impact will this have on the price level and cost of living for individuals?