The firm in the above figure breaks even when quantity is
A. A.
B. B.
C. C.
D. D.
Answer: C
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
What is perfect price discrimination? Is perfect price discrimination efficient? Why or why not?
What will be an ideal response?
Consider an economic policy regime in which rules are well-known but frequently ignored. Which of these statements is true?
A) This regime might work in the long-run, but is unlikely to produce good outcomes in the short run. B) Policymakers in this regime might find that rules are being broken with increasing frequency. C) This regime is more likely to be supported by nonactivist, than by activist policymakers. D) This regime is more likely to result in high unemployment than in high inflation. E) This regime is unlikely to produce large government budget deficits.
In the short run, fiscal policy has its primary affect on aggregate demand but in the long run fiscal policy can influence saving, investment and economic growth
a. True b. False Indicate whether the statement is true or false