Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary
B. B; no output
C. B; expansionary
D. A; a recessionary
Answer: A
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One effect of immigration is to:
A. Decrease a nation's total output and productive capacity B. Make capital resources less scarce relative to labor C. Decrease economic efficiency on a worldwide basis D. Increase the wage bill in a nation experiencing immigration if the demand for labor is elastic
When interpreting the Ed value as either elastic or inelastic, we look at the
A. percent change in price. B. Ed coefficient with its negative sign. C. absolute value of the Ed coefficient (dropping the negative sign). D. percent change in quantity.
A valid and useful theory of gold prices:
A. very likely includes as many details as possible about gold prices. B. helps to explain and predict the movements of gold prices over time. C. all of the above D. very likely relies on complex assumptions.
What is the marginal rate of substitution between two goods and how is it related to the indifference curve?
What will be an ideal response?