Suppose that we are currently at point b in Figure 14.1. A decrease in the price level will result in a:
A. shift in the AD curve from AD1 to AD2.
B. shift in the AD curve from AD1 to AD0.
C. movement from point b to point a.
D. movement from point a to point b.
Answer: D
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For the gold standard to achieve its maximum functioning efficiency, central banks should theoretically play the "rules of the game." What are these rules?
(a) Central bank policy should tie the flow of their gold reserves to their current accounts. (b) Central banks should "lean against the wind" and follow policies that offset gold movements. (c) Central banks should raise interest rates as gold flows in and lower them as gold flows out. (d) Central banks should sell securities as gold flows in and buy them as gold flows out.
The accompanying table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities.Number of EmployeesTotal DonationsAverage DonationsTotal Labor CostsAverage Labor Costs1$30,000 $8,0002$42,426 $17,000 3 $17,321$27,000 4$60,000 $9,5005 $13,416$50,000 The total value of donations raised by three employees is:
A. $48,911. B. $43,899. C. $45,000. D. $51,963.
The figure above shows the demand and cost curves facing a price-setting firm. In profit-maximizing (or loss-minimizing) equilibrium, the price-setting firm earns ________ in total revenue, which is ________ the maximum possible total revenue of ________.
A. $8,000; equal to; $8,000 B. $8,000; more than; $7,500 C. $7,650; less than; $8,000 D. $7,500; less than; $8,000 E. $7,500; equal to; $7,500
In an open economy, how many bikes will this country export? 
A. 80,000 B. 50,000 C. 20,000 D. 60,000