Referring to Figure 1.9, if a point is attainable, it is in 
A. AREA #2 but not on the curve.
B. AREA #1 or is on the curve.
C. AREA #1 but not on the curve.
D. AREA #2 or is on the curve.
Answer: B
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When the nominal interest rate is constant, ________ in the growth rate of the money supply ________ the inflation rate, and ________ the debt-to-GDP ratio
A) an increase; increases; increases B) an increase; decreases; increases C) a decrease; decreases; decreases D) a decrease; decreases; increases
Suppose that no externalities are generated by the production of chickens. If the price of chickens is equal to private marginal cost of producing chickens, then
a. that price is lower than the price associated with an efficient allocation of resources b. that price is higher than the price associated with an efficient allocation of resources c. that price is precisely the price associated with an efficient allocation of resources d. less than an efficient quantity is being produced e. more than an efficient quantity is being produced