1. Fortunately, this incorrectly marked answer is from a practice test, not a graded exam.

2. As is this one.

3. And this one.

4. Question 8 had four possible answer choices: --production possibilities curve shifted to the left --long-run aggregate supply curve shifted to the right --real GDP remained constant --capital stock increased by 2% None of these are correct; there was no right answer to choose.

5. It was more difficult to be sure when there was a mistake in a graded exam (as opposed to a practice test) because the “correct” answers were not shown at the end. This one, however, was especially obvious, and my course adviser awarded me two points for the one I’d missed.

6. Here are the definitions for these terms given by the course textbook: --Money, M1 = currency + checkable deposits --Money, M2 = M1 + savings deposits, including MMDAs + small (less than $100,000) time deposits + MMFs held by individuals --Money MZM = M2 – small ($100,000 or less) time deposits + MMMFs held by businesses According to these definitions, the first two answers here are both correct; the test counts only the second answer as right.

7. My textbook and a SmarThinking tutor confirmed my suspicion that my answer on this graded exam was in fact correct.

8. In fact what the textbook says is, “Studies show that countries that have independent central banks like the Fed have lower rates of inflation, on average, than countries that have little or no central bank independence.” Similar enough that I knew which answer to pick – but not the same thing.