When the production possibilities curve shifts outward,
A. the long-run aggregate supply curve shifts to the right.
B. the price level rises in the long run.
C. the long-run aggregate supply curve is unchanged.
D. the long-run aggregate supply curve shifts to the left.
Answer: A
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If a firm functions in an oligopoly, it is:
A. one of a large number of firms that produce a good with no close substitute. B. the only firm that produces a good with no close substitutes. C. one of a large number of firms that produce goods that are either close or perfect substitutes. D. one of a small number of firms that produce goods that are either close or perfect substitutes.
Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
A mixed strategy means a player:
A. makes random moves in a simultaneous game. B. mixes random moves with nonrandom moves. C. makes random moves in a sequential game. D. mixes optimal and suboptimal moves to confuse her opponent.
The MPS is about
A. .9.
B. .85.
C. .8.
D. .75.