The AD curve will shift to the right if:
a. people become pessimistic about the future of the economy.
b. there is a decrease in foreign income.
c. the government decreases spending.
d. the domestic price level decreases.
e. the foreign price level increases.
e
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Suppose the government has a $375 billion budget deficit. If the government creates $225 billion of new money to finance this deficit and finances the rest by borrowing, the amount borrowed from the public will be
A) $150 billion. B) $225 billion. C) $375 billion. D) $600 billion.
In the above figure, the firm will shut down if quantity falls below
A. A. B. B. C. C. D. D.
If a firm wants to increase revenue, it should increase the selling price of its product if it is currently producing in the ________ portion of its demand curve.
A. perfectly elastic B. unit elastic C. elastic D. inelastic
Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. 
Figure 7.8Refer to Figure 7.8. The slope of isocost AB is
A. greater than the slope of isocost CD. B. less than the slope of isocost CD. C. equal to the slope of isocost CD. D. indeterminate from this information, as the prices of capital and labor are not given.