According to new classical economists, if a decrease in aggregate demand is correctly anticipated, the short-run aggregate supply curve will shift __________ at the same time the AD curve shifts _________ so that there will be no change in Real GDP
A) rightward; rightward
B) leftward; rightward
C) leftward; rightward
D) rightward; leftward
E) none of the above
D
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The short-run supply curve for a perfectly competitive firm is its
A) marginal cost curve above the horizontal axis. B) marginal cost curve above its shutdown point. C) average cost curve above the horizontal axis. D) average cost curve above its shutdown point.
The nation listed below whose economy currently comes closest to a free market is
A. North Korea. B. Germany. C. People’s Republic of China. D. Cuba.
Suppose that nineteenth-century politicians had succeeded in their attempt to impose a “single tax”—a tax on suppliers of land (i.e., landlords). Most of the economic burden of the tax would have been borne by
A. renters, because the demand for land is generally less elastic than its supply. B. renters, because the demand for land is generally more elastic than its supply. C. landlords, because the demand for land is generally less elastic than its supply. D. landlords, because the demand for land is generally more elastic than its supply.
Refer to the figure below. What is the price elasticity of demand when the price of rice is $3 per pound? 
A. 2 B. 0.5 C. 0.75 D. 0.67