Which of the following is not an assumption made by the dynamic model of aggregate demand and aggregate supply?
A) The short-run aggregate supply curve shifts to the right except during periods when workers and firms expect higher wages.
B) The aggregate demand curve shifts to the right during most periods.
C) Aggregate demand and potential real GDP decrease continuously.
D) Potential real GDP increases continuously.
C
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Suppose that a new drug has been approved to treat a life-threatening disease. The demand for that drug is shown on the graph below. Prior to approval of this drug, the only treatment for this condition was any one of several non-prescription, or over-the-counter, pain relievers. The demand for one brand of the several non-prescription pain relievers is also shown on the graph. 
The manufacturer of the over-the-counter pain reliever would ________ total revenue by increasing the price from $15 to $16.
A. experience an uncertain change in B. experience no change in C. increase D. decrease
An upward shift of the planned expenditure curve resulting from a decrease in the price level corresponds to
A) aggregate demand shifting to the left. B) a movement up along the aggregate demand curve. C) a movement down along the aggregate demand curve. D) aggregate demand shifting to the right.
During last year the price of regular unleaded gasoline in Oakland, California increased 11.0 percent. If the price elasticity of demand for gasoline was 0.13, the price hike means that the quantity demanded decreased by
A) 1.43 percent. B) 8.46 percent. C) 0.16 percent. D) 4.31 percent. E) 6.46 percent.
Death taxes, both state and federal, account for about _____ percent of total tax revenue.
A. 1 B. 2 C. 3 D. 10