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 downward
C. Aggregate demand shifting rightward
D. Aggregate demand shifting leftward
Answer: B
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Use the following table to answer this question, which provides information on the production of a product that requires one variable input.InputTotal Product00102002060030720408205090060980The average product of the 30th input item is
A. 200. B. 120. C. 24. D. 12.
The intersection of the aggregate demand and aggregate supply curves determines the:
a. Per-unit cost of production in the economy b. Shape of the aggregate demand curve c. Shape of the aggregate supply curve d. Equilibrium level of real domestic output and prices
Federal income tax law excludes gain realized on the sale of a primary residence for individuals filing separately and for couples filing jointly. The amount of this exclusion is (separately/jointly):
A) $100,000/$200,000 B) $125,000/$250,000 C) $250,000/$500,000 D) $300,000/$600,000
Which of the following is NOT shown explicitly in the circular flow model?
A) the governments' purchases in the goods market B) the taxes the governments collect from households C) the governments' interaction with firms D) the legal system E) the transfers the governments make to households