Refer to the table. Suppose that demand is represented by columns (3) and (2) and supply is represented by columns (3) and (5). If the price were artificially set at $9:
A. the market would clear.
B. a surplus of 20 units would occur.
C. a shortage of 20 units would occur.
D. demand would change from columns (3) and (2) to columns (3) and (1).
B. a surplus of 20 units would occur.
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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
Unilateral transfers are
A) transactions that take place across national boundaries but in which both transactions are citizens of the same country. B) government transactions that use gold and other official reserves. C) gifts from a resident of one country to a resident in a foreign country. D) the payments of interest to residents of another country.
Suppose there is no change in total revenue when the price changes. The demand curve for this good is:
a. perfectly elastic. b. perfectly inelastic. c. elastic. d. inelastic. e. unitary elastic.
If the MPS equals 0.25 and the MPI is 0.15, then an initial change in investment spending of $250 million will result in a total change in equilibrium real GDP of $625 million
a. True b. False Indicate whether the statement is true or false