Keynesian economists would likely argue that the classical model is which of the following?
A) a long-run theory
B) a short-run theory
C) both a long-run and short-run theory
D) a sticky price theory
A
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If real GDP is less than potential GDP, then the economy is ________ equilibrium
A) at an above-full-employment B) not in short-run macroeconomic C) at a below-full-employment D) in long-run macroeconomic
An indifference curve is:
A. downward sloping and concave to the origin. B. downward sloping and convex to the origin. C. upward sloping and concave to the origin. D. upward sloping and convex to the origin.
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.
Refer to the information provided in Figure 8.3 below to answer the question(s) that follow. 
Figure 8.3
Refer to Figure 8.3. The marginal cost of the eleventh basketball is
A. less than $1. B. $1. C. $2. D. greater than $2.