The assumption that in the long run prices and wages are fully flexible implies that the long-run aggregate supply curve is determined by ________
A) capital and labor inputs
B) technology
C) the natural rate of unemployment
D) all of the above
E) none of the above
D
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As of July 2012, the 12 month CPI inflation rate was 1.4 percent and the 12 month core CPI inflation rate was 2.1 percent. The difference between these two measurements of inflation indicates
A) prices for food and fuel grew less rapidly than prices for other goods. B) prices for food and fuel grew more rapidly than prices for other goods. C) the underlying inflation rate was lower than the overall inflation rate. D) hyperinflation.
If a price ceiling of $8 were placed on the market in the graph shown, which area represents the surplus that is transferred from producers to consumers?
A. C + D + F + G
B. C + D
C. F + G
D. C
The marginal factor cost of the third laborer is ________ if the labor supply curve faced by a firm has the following wage-quantity coordinates: 
A. 25 B. 30 C. Cannot be determined until the nature of the product market is known D. 15
Exhibit 5-4 Demand curves for silver
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Assume that a wealthy buyer, Mr. Hunt, declares that he will purchase any amount of silver at a price of $125 an ounce. In Exhibit 5-4, which graph illustrates the shape of the demand curve for silver?
A. Graph A. B. Graph B. C. Graph C. D. Graph D.