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
Answer: B
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If real wages fall:
A) consumer demand is likely to increase. B) employers are likely to hire more workers. C) the level of economic production will always increase. D) the level of economic production will always decrease.
If inflation in the United States is higher than in Japan, what will happen to the exchange rate between the U.S. dollar and the Japanese yen?
A. The dollar and yen will both depreciate. B. The dollar and yen will both appreciate. C. The dollar will depreciate and the yen will appreciate. D. The dollar will appreciate and the yen will depreciate.
If the prices of all goods increase by the same proportion as income, the quantity demanded of good x will:
a. decrease. b. increase. c. remain unchanged. d. change in a way that cannot be determined from the information given.
Suppose that when the price of broccoli is $4 per pound, buyers wish to buy 500 pounds per day and sellers wish to sell 800 pounds per day. In this case:
A. excess supply will lead the price of broccoli to fall. B. excess demand will lead the price of broccoli to rise. C. excess demand will lead the price of broccoli to fall. D. excess supply will lead the price of broccoli to rise.