Regarding operating risk exposure, which of the following statements is NOT true?
a. they are more difficult to hedge than transaction risk exposures
b. they are easier to forecast than translation risk exposures
c. they necessitate more managerial attention and extensive analysis
d. only a and b
e. all of the above are true
b
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Assume that an economy's real GDP multiplier is 4 . If this economy is in equilibrium at $2,000 billion, then which one of the following actions will bring it to a full employment equilibrium of $1,500 billion?
a. $500 billion spending cut. b. $500 billion spending increase. c. $125 billion spending cut. d. $125 billion spending increase. e. $2,000 billion spending cut.
The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A