Refer to the information provided in Figure 15.4 below to answer the question(s) that follow. 
Figure 15.4 Refer to Figure 15.4. If The Hand Made Shirt Shop is monopolistically competitive, what is the maximum level of average variable cost that would lead to the firm continuing to operate at the profit-maximizing level in the short run?
A. $18
B. $22
C. $23
D. $25
Answer: C
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The main reason that finished goods are scarce is that
A. raw material resources are scarce. B. factories are not operated efficiently. C. distribution systems are clogged. D. taxes are destroying work incentives. E. All of the responses are correct.
The idea behind the Phillips curve is that ________
A) tight labor markets lead to inflationary pressures B) when the unemployment rate is low, wages will increase C) when firms raise wages to attract new workers, prices will also increase D) all of the above E) none of the above
The market in which banks make loans of reserves for terms of over one year is called the federal funds market
a. True b. False Indicate whether the statement is true or false
Refer to the accompanying figure.
Based on the figure, if autonomous spending increases from 400 to 600, then the new short-run equilibrium output will equal:
A. 600. B. 800. C. 1,200. D. 400.