Currently challenging Treasury bills as the centerpiece of the money market is (are)

Refer to Figure 15-7. Suppose the economy is in short-run equilibrium above potential GDP, the unemployment rate is very low, and wages and prices are rising

Using the static AD-AS model in the figure above, the correct Fed policy for this situation would be depicted as a movement from A) A to E. B) B to C. C) C to D. D) C to B. E) A to B.

Which of the following is likely to yield the greatest consumer surplus?

a. a nugget of gold found in a rushing creek in Alaska b. a gold necklace on sale at 20 percent off original price c. a gold necklace on sale at 40 percent off original price d. a dip in the neighbor's pool, at no charge e. a gulp of water from an oasis in the Sahara desert after three days of thirst