If X and Y are substitutes, the demand curve for X will shift to the right when the price of Y decreases
a. True
b. False
Indicate whether the statement is true or false
False
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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
Refer to Figure 8.6, which shows a firm's short-run average cost curves for three different levels of capital. Which of the following statements about short-run and long-run marginal cost is true?
A. Long-run marginal cost equals short-run marginal cost at 50 units of output.
B. Long-run marginal cost equals short-run marginal cost at 130 units of output.
C. Long-run marginal cost equals short-run marginal cost at 160 units of output.
D. Long-run marginal cost and short-run marginal cost are never equal.
The only variable that can affect a movement along the demand curve is
A. the number of substitutes. B. income levels. C. the price of the good itself. D. the number of buyers.
In a private closed economy, there will be an unplanned increase in inventories when:
A. Aggregate expenditures exceed GDP B. Aggregate expenditures exceed (C + I g ) C. (C + I g ) exceeds aggregate expenditures D. GDP exceeds aggregate expenditures