This graph depicts the demand for a normal good. 
Suppose Johnny was consuming a normal good at point A in the figure shown, but has just received a raise at work. Johnny's demand may:
A. increase to point B.
B. be unaffected.
C. drop to zero.
D. increase to point C.
Answer: A
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What will be an ideal response?
The aggregate supply curve is
a. vertical in the short run b. horizontal in the short run c. the sum of all of the supply curves of individual firms in the economy d. downward sloping in the short run e. upward sloping in the short run
The term tax incidence refers to how the burden of a tax is distributed among the various people who make up the economy
a. True b. False Indicate whether the statement is true or false
A change in the reserve requirement affects:
A. The money multiplier and excess reserves. B. Excess reserves and the discount rate. C. The discount rate and the federal funds rate. D. The money multiplier and the federal funds rate.