Using real GDP and employment growth relative to the peak of the business cycle, the 2007-2009 recession, as compared to the previous two recessions in 1990 and 2001:

a. was deeper.

b. was less severe.

c. was shorter.

d. was shorter but more severe.

Which of the following statements about adjustable-rate mortgages is TRUE?

a. Interest rates can't change over the life of the mortgage.

b. Adjustable-rate mortgages are especially attractive to high-income buyers.

c. Adjustable-rate mortgages usually have interest rates lower than market rates during the first year.

d. Adjustable-rate mortgages are more attractive when interest rates on fixed mortgages fall.

The long-run Phillips curve shows:

a. a tradeoff between inflation and unemployment.

b. the relationship between unemployment and inflation when the inflation rate is zero.

c. the relationship between inflation and unemployment when the expected inflation rate exceeds the actual inflation rate.

d. the relationship between inflation and unemployment when the actual inflation rate and the expected inflation rate are equal.

Which of the following is NOTa factor that explains jobless recoveries?

a. rising productivity

b. the increased use of temporary and part-time workers

c. lax labor laws

d. an increase in outsourcing

Monetized debt:

a. is paid for by a decrease in the money supply.

b. results in appreciation of the dollar.

c. will result in a weaker dollar if foreigners hold fewer dollars.

d. increases the burden of existing debt.

Import restrictions on a product protect domestic industries by:

a. increasing the imports of the good, and lowering the price.

b. increasing the imports of the good, and raising the price.

c. decreasing the imports of the good, and lowering the price.

d. decreasing the imports of the good, and raising the price.