Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward
B. Short-run aggregate supply shifting upward
C. Short-run aggregate supply shifting downward
D. Aggregate demand shifting leftward
Answer: B
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An increase in both supply and demand causes which of the following?
a. Equilibrium price falls. b. Equilibrium price rises. c. Equilibrium price change is indeterminate. d. Equilibrium quantity decreases. e. Equilibrium quantity change is indeterminate.
Which of the following accurately represents income earned by all factors of production?
A. national income B. disposable personal income C. personal income D. wages and salaries
Using Figure 1.4, we know the production of 6 units of soda and 2 units of pizza is 
A. impossible because we have the resources but do not have the technology. B. impossible because we have the technology but do not have the resources. C. possible, but there would be unemployment. D. possible, but only if all resources were fully employed.
Refer to Figure 2-11. Which country has a comparative advantage in the production of cashews?
A) Pakistan B) Indonesia C) They have equal productive abilities. D) neither country