Tommy buys only soda and pizza and is buying the amounts that maximize his utility. The marginal utility from a soda is 5 and the price of a soda is $1. The marginal utility from a slice of pizza is 10. The price of a slice of pizza must be
A) $10.
B) $2.
C) $1.
D) some amount that cannot be calculated without more information.
B
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
The price elasticity of demand measures the extent to which the quantity demanded changes when
A) the price of the good changes. B) the price of a related good changes. C) the expected future price of a good changes. D) consumer preferences change. E) both the demand and supply of the good change.
The deliberate manipulation of government purchases, taxation, and transfer payments to promote macroeconomic goals is called using automatic stabilizers
Indicate whether the statement is true or false
Other things equal, a rise in interest rates can be expected to:
A. have no effect upon the quantity of investment. B. decrease the quantity of investment. C. increase the quantity of investment. D. increase equilibrium income.