When Fed policy is being used to offset a contractionary gap, which of interest rates, investment, net exports and aggregate demand moves in the opposite direction from the others?
a. Interest rates

Based on the graph above, if the economy is at point 2, then (assuming no price shocks and no changes in actual and potential output) the inflation rate next period will be ________ percent

A) 5 B) 3.5 C) 4.5 D) 4 E) none of the above

If you have flipped a fair coin and tails has come up 49 times in a row, what are the odds that the next flip will be a tail?

A) 0 B) 1/50 C) 1/25 D) 1/2