If the price level decreases, then the aggregate expenditures schedule will shift and this translates into a ________.
A. shift in aggregate demand to the right
B. shift in aggregate demand to the left
C. movement up along the aggregate demand curve
D. movement down along the aggregate demand curve
Answer: D
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In response to a negative income tax, the substitution of leisure for income could be great enough to reduce total income
a. True b. False
In the North, the Civil War:
a. led to increased output of boots and shoes. b. led to increased output of iron for railroads. c. increased textile mill production to capacity. d. was accompanied by a relatively low unemployment rate. e. All of the above.
The Federal Reserve Act establishing the Federal Reserve System was passed by Congress in
A. 1788. B. 1913. C. 1863. D. 1934.
Suppose Acme and Mega produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. 
Suppose Acme and Mega decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price. If Mega cheats on the agreement by reducing its price to $1 while Acme continues to comply with the collusive agreement, then Mega's economic profit will be ________.
A. $200 B. $150 C. $100 D. $75