Which of the following increases the effectiveness of monetary policy from a monetarist perspective?
A. Changing expectations.
B. Unresponsive investment demands.
C. The liquidity trap.
D. The constant velocity of money.
Answer: D
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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
The wages for Nike workers increases. At the same time, we see the price for Adidas shoes increase. How does this affect the market for Nike shoes?
a. The demand curve will shift to the left; the supply curve will shift to the left b. The demand curve will shift to the left; the supply curve will shift to the right c. The demand curve will shift to the right; the supply curve will shift to the left d. The demand curve will shift to the right; the supply curve will shift to the right
Many disagreements among economists result because:
A) economists deal only with positive economics. B) economists sometimes make normative judgments. C) economics is a social science. D) economics deals so much with theories and models.
When total product is rising
A) fixed cost must be rising. B) marginal product must be positive. C) variable cost must be declining. D) marginal product must be negative.