When constructing an economic model, economists
a. rely mostly on their own value judgments and ignore the far more complex world of facts
b. always try to duplicate reality by including all available information
c. use assumptions that are true for the individual but never true for the whole economy
d. must rely on simplifying assumptions that abstract from the complexity of the real world
e. are primarily concerned with making realistic assumptions
D
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Gross national product, GNP, of the United States is the market value of all final goods and services
A) consumed by citizens of the United States anywhere in the world. B) consumed within the United States. C) produced within the United States. D) produced by citizens of the United States anywhere in the world.
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
Incomes for adults vary widely across race and gender in the United States. These differences could be due to:
A. choice of occupation. B. experience. C. education. D. All of these can explain the differences.
Which of the following is the path through which contractionary monetary policy works?
A. Money down implies interest rate up implies investment up implies income down. B. Money down implies interest rate down implies investment up implies income down. C. Money down implies interest rate up implies investment down implies income down. D. Money down implies interest rate down implies investment down implies income down.