The above figure shows the demand and cost curves facing a monopoly. If a $100 per unit tax is charged, what is the incidence of the tax on consumers?
A) 100%
B) 50%
C) 25%
D) 0%
B
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
Giffen goods have positively-sloped demand curves because they are
a. normal goods for which the income effect outweighs the substitution effect. b. normal goods for which the substitution effect outweighs the income effect. c. inferior goods for which the income effect outweighs the substitution effect. d. inferior goods for which the substitution effect outweighs the income effect.
If C = $250, I = $50, G = $60, NX = -$20, and NFP = $5, how much is GNP?
A. $335 B. $365 C. $340 D. $345