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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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD 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. D; B C. A; B D. B; C
When considering the factor distribution of income, which of the following income is represented as proprietor income?
A. Rent for capital. B. Interest for loans on capital. C. Labor or capital factors that proprietors put into their businesses D. Wages for workers
Which component of consumption has a negative or indirect relationship with consumption?
A. Expected future income B. Real income C. Wealth D. Interest rates
Which of the following has not occurred in the United States over the last two decades?
A. A fall in real wages B. An increase in labor-force participation C. Growth in service sector employment D. A decrease in the wage differentials between colleges grads noncollege grads.