When the price of a good changes, the total effect of the price change on the quantities purchased can be found by comparing the quantities purchased
A) on the old budget line and the new budget line.
B) on the original indifference curve when faced with the original prices and when faced with the new prices.
C) on the new budget line and a hypothetical budget line that is a parallel shift back to the original indifference curve.
D) on the new indifference curve.
A
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
Which of the following statements is true?
A) In the United States, the unemployment rate among bachelor degree holders is more than the unemployment rate among high school diploma holders. B) Unemployment rate is higher among groups with lower educational attainment. C) More educated workers have a lower opportunity cost of time than less educated workers. D) The unemployment rate in a country normally increases when the country's economy expands.
The rule of reason refers to the interpretation of the courts that dominant firms should be broken up because of their:
a. market share dominance. b. illegal business practices. c. monopolistic behavior. d. All of these.
Given the expected price level, policies for reaching potential GDP will work best if the money supply is: a. large, so that prices at potential GDP are below expectations and people can afford to buy enough goods to support the natural level of employment. b. large enough, so that prices at potential GDP are above expectations and firms can afford to hire workers. c. small, so that prices at
potential GDP are below expectations and people can afford to buy enough goods to support the natural level of employment. d. small, so that prices at potential GDP are above expectations and firms can afford to hire the workers. e. exactly the size that makes prices equal to the prices people expected to prevail.