Say’s Law implies that
a. production generates income, which is all spent to purchase what was produced.
b. demand creates its own supply.
c. markets do not clear.
d. demand determines real output.
a. production generates income, which is all spent to purchase what was produced.
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
Export tariffs are generally supported by business interests
Indicate whether the statement is true or false
Three possibilities have probabilities 0.5, 0.4 and 0.1 and values $10, $20, and $30 respectively. The expected value is:
a. $15 b. $16 c. $17 d. $18
A patient has a medical condition, but he doesn't know what it is. The physician he sees diagnoses his illness correctly. What term applies to this situation?
a. Principle-agent problem. b. Rational ignorance. c. Externalities. d. Asymmetric information e. The substitution effect.