Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. 
Figure 7.8Refer to Figure 7.8 The firm's isocost line could shift from CD to AB if
A. the price of capital and labor each increased by 25%.
B. the price of capital increased.
C. the firm's total expenditures increased by 25%.
D. the firm's total expenditures decreased by 25% or the price of capital and labor each increased by 33%.
Answer: D
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In the United States, monetary policy is determined by
A) the Federal Reserve. B) the president. C) private citizens. D) the Treasury Department.
If there is persistent inflation
A) long-run aggregate supply is growing at a faster rate than aggregate demand. B) long-run aggregate supply is growing at a slower rate than aggregate demand. C) there is an excess of total planned expenditures. D) long-run aggregate supply is constant.
An imperfectly competitive firm faces a demand curve that is:
A. downward-sloping. B. perfectly inelastic. C. more than perfectly elastic. D. perfectly elastic.
In a certain economy, the components of planned spending are given by: C = 500 + 0.8(Y - T) - 300rI P = 200 - 400rG = 200NX = 10T = 150 Given the information about the economy above, which expression gives induced expenditures?
A. 0.8Y B. [910 ? 700r ] C. 0.2Y D. [790 ? 700r ]