A decrease in government spending will cause
A. AD to increase (move to the right).
B. AS to decrease (move up and to the left).
C. AS to increase (move down and to the right).
D. AD to decrease (move to the left).
Answer: D
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
If the price of monthly satellite TV service increases from $40 to $50, the percentage change is
A) 5 percent. B) 20 percent. C) 25 percent. D) 45 percent.
A critical assumption in the model of demand and supply is the independence of the demand and supply curves. If the two are not independent from each other, a shift in the supply curve can lead to a shift in the demand curve referred to as:
a. supply-side economics. b. ceteris paribus. c. supply shocks. d. supplier-induced demand. e. the fallacy of supply.
Which of the following is a TRUE statement about monopoly and perfect competition?
A. Price is always higher and output higher under monopoly than under perfect competition. B. If there are substantial economies of scale, price may be lower and output greater under monopoly than under perfect competition, and price may be below marginal cost instead of equal to marginal cost. C. Because costs do not depend on market structure, price is usually higher and output is always lower under monopoly than perfect competition. D. If there are substantial economies of scale, price may be lower and output greater under monopoly than under perfect competition.