In the graph showing an increase in the growth of the money supply, expansionary policy moves the inflation rate up the short-run Phillips curve by an increase of ______.

High income countries with larger governments as a share of GDP have generally

a. grown less rapidly than their counterparts with smaller governments. b. experienced less deadweight losses resulting from taxes and/or government borrowing. c. seen the government decrease in size as real GDP rises. d. been able to be more economically efficient.

On which of these bonds is the prospect of default least likely?

a. a junk bond b. a bond issued by the state of Arizona c. a bond issued by the federal government d. a bond issued by General Electric Corporation