Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A
B. Falling; A; C
C. Falling; B: C
D. Rising; A; C
Answer: B
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According to your text, which group or organization makes choices?
A) Al Qaeda B) New York City C) The Microsoft Corporation D) The Iraqi Government E) None of the above.
Suppose that Congress allocates $1 billion to clean up after hurricanes in 2016. It also raises taxes by $1 billion to keep the deficit from growing. If the marginal propensity to consume is 0.9, what is the effect on equilibrium GDP?
A) GDP increases by $900,000. B) GDP increases by $10 billion. C) GDP increases by $1 billion. D) GDP does not change.
If it is employing the rule of reason when considering an antitrust case, the court
a. considers why the offending practice was adopted and its effect on competition b. does not consider why the offending practice was adopted or its effect on competition c. ignores the economic rationale for the offending practice and its consequences d. needs only determine that the offending practice took place e. considers only whether the firm has market power, not whether it used that power unreasonably
Someone notices that sunspot activity is high just prior to recessions and concludes that sunspots cause recessions. This person has:
A. confused association and causation. B. misunderstood the Ceteris paribus assumption. C. used normative economics to answer a positive question. D. built an untestable model.