22. In the above figure, flow B represents _______.

(A) household borrowing
(B) household income
(C) household purchases of goods and services
(D) firms' payments for labor services

23. Using the information in the table above, calculate gross domestic product. (A) $4,690 billion (B) $5,130 billion (C) $5,320 billion (D) $4,760 billion

24. Using the information in the table above, net exports equals _______. (A) $20 billion. (B) -$70 billion. (C) $650 billion. (D) $1,370 billion.

25. Using the information in the table above, depreciation equals _______. (A) $90 billion. (B) -$70 billion. (C) -$90 billion. (D) some amount that cannot be determined.

26. The payoff matrix of economic profits above displays the possible outcomes for Bob and Jane who are involved in a game of whether or not to advertise. After each player chooses his or her best strategy and sees the result, (A) if Bob does not change his move, Jane would like to change hers. (B) if Jane does not change her move, Bob would like to change his. (C) Bob only would like to move to another square. (D) neither player would be willing to change unless the other does also.

27. Using the information in the table above, calculate gross domestic product. (A) $78 (B) $108 (C) $86 (D) $118

28. Using the information in the table above, calculate the government's budget deficit or surplus. (A) -$4 (B) -$10 (C) $2 (D) $4

29. In the above figure, suppose point A is the original equilibrium. If there is an increase in the quantity of money that shifts the aggregate demand curve to AD1, the new short-run equilibrium is given by point _______. (A) A (that is, the equilibrium does not change). (B) B. (C) C. (D) D.

30. In the above figure, suppose point A is the original equilibrium. If there is an increase in the quantity of money that shifts the aggregate demand curve to AD1, in the long run the price level is _______. (A) 120. (B) 100. (C) 110. (D) 90.

31. If the population is 300 million, with 70 million under the age of 16 and institutionalized, another 70 million not in the labor force, 10 million unemployed and 150 million employed, the labor force participation is _______. (A) 6.67 percent. (B) 69.6 percent. (C) 50 percent. (D) 23.3 percent.

32. A classical economist believes that _______. (A) the economy is self-regulating and always at full employment. (B) the economy is self-regulating and will normally, though not always, operate at full employment if fiscal policy is not erratic. (C) the economy is self-regulating and will normally, though not always, operate at full employment if monetary policy is not erratic. (D) if the economy was left alone, it would rarely operate at full employment.

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