If a firm increases its production every month, then its:
a. average fixed cost increases every month.
b. average variable cost gets closer to the average total cost every month.
c. average variable cost becomes equal to the average total cost.
d. average fixed cost gets closer to the average total cost every month.
b
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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
Refer to the table above. If the price level is 120, then the aggregate quantity demanded is ________ than the aggregate quantity supplied and the price level ________
A) greater; rises B) greater; falls C) less; rises D) less; falls E) less; might fall, rise or not change depending on whether real GDP is more than, less than, or equal to potential GDP.
In the absence of a Ricardo-Barro effect, a government budget deficit ________ the demand for loanable funds and ________ investment
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
What is one reason firms might lobby to prevent entry into their market?
A) The long run equilibrium might be characterized by P = MC = ATC. B) The long run equilibrium might be characterized by P = MC < ATC. C) The long run equilibrium might be characterized by P > MC = ATC. D) The long run equilibrium might be characterized by P = MC > ATC.