As the price elasticity of supply approaches infinity, very small changes in price lead to
a. very large changes in quantity supplied.
b. very small changes in quantity supplied.
c. no change in quantity supplied.
d. None of the above is correct.
a
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
Refer to Figure 2-7. Assume a technological advancement greatly reduces the cost to produce self-driving vehicles. This is best represented by the
A) movement from K to L in Graph C. B) movement from G to H in Graph B. C) movement from H to J in Graph B. D) movement from E to F in Graph A.
Who hires the managers of a corporation?
A) employees B) stockholders C) managers D) the board of directors
If output begins to grow substantially faster than capital and labor inputs, then the real business cycle model predicts, ceteris paribus, ________
A) an increase in inflation B) a decrease in employment C) a decrease in investment D) a business cycle expansion