Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 

If production remains the same and all prices double relative to the base year, then the GDP deflator is:

A. 1/4. B. 1/2. C. 1. D. 2.

Suppose that you face a gamble that has a payoff of $1000 with probability 0.2 and a payoff of $200 with probability 0.8. I approach you to sell you insurance with a premium of p and a benefit of b. Which combinations of p and b are actuarily fair?

A. p=8, b=10 B. p=400, b=500 C. p=720, b=900 D. (a) and (b) are actuarily fair E. (a) and (c) are actuarily fair F. (b) and (c) are actuarily fair G. All of the above. H. None of the above.