The difference between the nominal interest rate and the rate of inflation is:
a. the prime rate

If a risky cash flow of $10,000 is equivalent to a riskless cash flow of $9,300, the certainty equivalent factor is

A) 0.93. B) 0.07. C) 1.07. D) 1.93.

Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 

A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward