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.
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.
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