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
Answer: B
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An increase in taxes will ________ consumption spending, and a decrease in transfer payments will ________ consumption spending
A) decrease; increase B) decrease; decrease C) increase; decrease D) increase; increase
The existence of international policy externalities provides an incentive for
A) strategic policy making. B) monetary autonomy. C) optimal currency areas. D) inflationary policy bias.
Tariff rates remained high after the Civil War because government revenue needs were pressing and there were protectionist sentiments
Indicate whether the statement is true or false
Which of the following statements best reflects the law of diminishing marginal utility?
A. "I have to have a scoop of ice cream on my pie." B. "I'll never get tired of your cooking." C. "The last bite tastes just as good as the first." D. "I couldn't eat another doughnut if you paid me." E. "I prefer to eat several small meals a day, rather than three large ones."