Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward
B. Short-run aggregate supply shifting upward
C. Short-run aggregate supply shifting downward
D. Aggregate demand shifting leftward
Answer: B
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The two most important factors contributing to increased productivity in industrialized countries in the twentieth century were:
A. higher relative prices and technological progress. B. higher relative prices and a larger labor supply. C. technological progress and increases in the labor supply. D. technological progress and increases in the capital stock.
If the regulator wants to avoid any deadweight loss in a natural monopoly market, the regulator has the firm set its price equal to its
A) average fixed cost. B) average total cost. C) average variable cost. D) marginal cost.
Which of the following is an example of expansionary fiscal policy?
a. Decrease government spending. b. Increase government spending. c. Increase taxes and decrease government spending equally. d. Increase taxes.
The prices for which of the following goods are included in both the GDP deflator and the consumer price index?
A) goods bought by households B) goods bought by firms C) good bought by governments D) goods bought by foreign households (i.e., exports) E) all of the above