1. In the long run, the Phillips curve ________.

a. has a tradeoff between unemployment and potential inflation.

b. has no tradeoff between unemployment and inflation

c. has a tradeoff between unemployment and inflation

d. has a tradeoff between unemployment and the natural rate of unemployment.

2. A Phillips curve shows the tradeoff between unemployment and inflation, therefore ________.

a. if one is high the other must be high

b. they cancel each other out

c. if one is higher the other must be low

d. if one is low the other must be low

3. The precursor to the World Trade Organization (WTO) was the ________.

a. European Union (EU)

b. General Agreement on Tariffs and Trade (GATT)

c. Rules and Regulation Board

d. Tariff Organization

4. An example of a regional trade agreements is ________.

a. WTO

b. Economic Union

c. NAFTA

d. GATT

5. The World Trade Organization (WTO) was established to ________.

a.let trade disputes resolve themselves

b. host trade disputes

c. end the intention of the General Agreement on Tariffs and Trade (GATT)

d. Manage The World Bank

6. The General Agreement on Tariffs and Trade (GATT) was started in ________.

a. 1950

b. 1946

c. 1947

d. 1945

7. What happens to the money supply if the Fed lowers the discount rate?

a. it decreases and then increases.

b. it decreases.

c. it increases, and then decreases.

d. it increases