Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. 
Figure 7.8Refer to Figure 7.8. The firm's isocost line could shift from CD to CE if the
A. price of labor increased.
B. price of labor decreased by 50%.
C. firm's total expenditures increased by 50% or the price of capital and labor each decreased by 33%.
D. firm's total expenditures increased by 50%.
Answer: B
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Use the figure above to answer this question. Suppose the economy is operating at point a. A move to ________ could be explained by ________
A) point e; a decrease in the nominal interest rate B) point c; an increase in the nominal interest rate C) point d; an increase in real GDP D) point b; an increase in real GDP
To minimize the asymmetric information problem, the government is called on to require and enforce full disclosure of information
a. True b. False Indicate whether the statement is true or false
Suppose a friend gives you two pieces of gum, and you decide to have one piece now and save the other for tomorrow. You do this because:
a. the total utility you get from the two pieces of gum will be higher tomorrow. b. the marginal utility you get from the second piece will be higher tomorrow. c. the marginal utility you get from the second piece will be higher today. d. the marginal utility you get from the first piece will be less today. e. the total utility you get from the two pieces will be less tomorrow.
Which of the following components of spending is not treated as a given value in the short-run macro model?
a. Net exports b. Imports c. Investment spending d. Consumption spending e. Government spending