Other things constant, which of the following would reduce unemployment and raise inflation?
a. businesses become more optimistic about the future of the economy
b. because of high growth abroad, net exports rise
c. the government cuts taxes
d. All of the above are correct.
d
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Suppose that consumers expect the price of a product to decrease in the future. The result is that
A) the current demand for the product increases. B) the current demand for the product decreases. C) the current supply of the product decreases. D) the current supply of the product increases.
A monopolist is producing a level of output at which price is $65, marginal revenue is $35, average total cost is $35, and marginal cost is $50. In order to maximize profit, the firm should
A. produce less. B. produce more. C. decrease price. D. keep output the same. E. both c and d
Among economists, a basic economic policy debate regarding markets is:
A. whether markets ought to have prices. B. what data is available for a model given institutions. C. whether to let economic forces exist. D. what coordinating mechanism will best solve a specific problem.
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary