To decrease the price level the government could adopt policies that
A. decrease aggregate supply and aggregate demand.
B. increase aggregate supply and decrease aggregate demand.
C. increase aggregate supply and aggregate demand.
D. decrease aggregate supply and increase aggregate demand.
Answer: B
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
In the treatment of U.S. exports and imports, national income accountants ________.
A. add both exports and imports in calculating GDP B. subtract exports but add imports in calculating GDP C. subtract both exports and imports in calculating GDP D. add exports but subtract imports in calculating GDP
When TR is increasing as a monopolist's output increases
A) MR is negative. B) MR is positive. C) MR = 0. D) MR may be positive or negative.
Incentives are not likely to be a problem if:
A. all actions are observable. B. actions are not observable. C. workers' efforts are not contractible. D. only some actions are observable.