Refer to the following figure. The price of capital is $50 per unit: 
How many units of capital should the firm use to produce 800 units of output at least cost?
A. 98
B. 120
C. 110
D. 102
E. 108
Answer: D
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An increase in taxes will increase total planned expenditures for goods and services
Indicate whether the statement is true or false
Refer to Figure 3.1. What is the number of outcomes which represent Nash equilibria in this game?
A) 1 B) 2 C) 3 D) 4
Since the end of World War II, the U.S. has almost always had rising prices and an upward trend in real GDP. To explain this
a. it is only necessary that long-run aggregate supply shifts right over time. b. it is only necessary that aggregate demand shifts right over time. c. both aggregate demand and long-run aggregate supply must be shifting right and aggregate demand must be shifting farther. d. None of the above cases would produce rising prices and growing real GDP over time.
When prices and unemployment rise, such an event is sometimes called
a) expansion. b) stagflation. c) inflation. d) depreciation.