Increase in the real interest rate will ________ the expenditure curve:
A) decrease.
B) increase.
C) not change.
D) none of the above.
A
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In monopolistically competitive markets, economic profits ____, and ____ shifts the demand curve of the remaining firms to the ____
a. signal some remaining firms to exit; exit; right b. signal some remaining firms to exit; exit; left c. signal new firms to enter; entry; left d. signal new firms to enter; entry; right
Public saving is positive when:
A. after-tax income of households and businesses is greater than consumption expenditures. B. after-tax income of households and businesses is less than consumption expenditures. C. the government's budget is balanced. D. there is a government budget surplus.
Suppose that the inflation rate has been 2 percent per year for several years, and the unemployment rate has been stable at 4 percent. Unanticipated changes in government policy cause the inflation rate to increase to 4 percent. In the short run, we would expect the unemployment rate to
A. decrease. B. increase to 7 percent. C. increase, but the exact amount cannot be known for sure. D. remain constant.
Refer to the information provided in Figure 7.9 below to answer the question(s) that follow. 
Figure 7.9Refer to Figure 7.9. The firm's isocost line could shift from AB to CD if
A. the price of capital decreased. B. the firm's total expenditures increased by 50%. C. the price of capital and labor each decreased by 33.3%. D. either B or C