A tax on labor income __________. The equilibrium quantity of labor __________.
Fill in the blank(s) with the appropriate word(s).
decreases the supply of labor; decreases
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
The market supply curve for labor is
A) perfectly inelastic if leisure is an inferior good. B) determined by adding up the quantity of labor supplied by each worker at each wage, holding constant all other variables that affect the willingness of workers to supply labor. C) determined by adding up the wages each worker is willing to work for at a given quantity supplied, holding constant all other variables that affect the willingness of workers to supply labor. D) derived from the market supply curve for the output produced with labor.
When supply and demand analysis is used to study the exchange rate, foreign exchange is treated just like
a. a good or a service b. debt c. fiat money d. commodity money e. investment
In the short run, expansionary fiscal policy usually will
A. increase real GDP and decrease the price level. B. decrease the price level and increase real GDP. C. increase both real GDP and the price level. D. decrease both real GDP and the price level.