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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Answer the following statement(s) true (T) or false (F)
1. When an increase in marginal productivity increases workers' nonlabor income, the effect on the quantity of labor supplied is ambiguous. 2. A permanent increase in workers' marginal productivity causes employment to rise by more than if the increase were temporary. 3. A technological improvement that is permanent is more likely to raise employment than one that is temporary. 4. Education is partly investment but also partly consumption. 5. All other things being equal, firms that provide on-the-job training to workers will tend to pay higher wages.
Doug wants to start up his own business, and needs $25,000 to get it off the ground. He can either withdraw it from his savings account, where he currently earns 3 percent, or he can take out a loan for $25,000 and pay 5 percent interest. Doug should compare:
A. the implicit cost of $750 to the explicit cost of $1,250 and choose to use his savings. B. the implicit cost of $750 to the explicit cost of $1,250 and choose to borrow the money. C. the explicit cost of $750 to the implicit cost of $1,250 and choose to use his savings. D. the explicit cost of $25,750 to the explicit cost of $26,250 and choose to borrow the money.
Place point B on the graph to indicate where the United States economy operated in 1943.
Assume that a consumer has a given budget or income of $12, and that she can buy only two goods, apples or bananas. The price of an apple is $1.50 and the price of a banana is $0.75. Refer to the information given above. If the consumer decides to buy 4
apples, how many bananas can she also buy with the remainder of her budget? A. 8 bananas B. 4 bananas C. 6 bananas D. 10 bananas