Increases in deficit spending may be accompanied by
A. An increase in U.S. exports.
B. A shift of the Aggregate supply curve to the right.
C. A shift of the Aggregate demand curve to the right.
D. The U.S. Treasury buying more bonds.
Answer: C
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
Refer to Figure 2-6. If the economy is currently producing at point E, what is the opportunity cost of moving to point B?
A) 30 thousand wrenches B) 10 thousand hammers C) 13 thousand hammers D) 0 wrenches
If a chemical factory causes noxious fumes to be emitted in the neighborhood, a third party would be:
a. workers at the factory. b. factory managers. c. chemical customers. d. local homeowners. e. owners of the factory.
In the aggregate expenditures model, if aggregate expenditures (AE) are greater than GDP, then:
a. inventory is unchanged. b. inventory is accumulated. c. employment decreases. d. GDP increases.