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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The smaller the amount saved out of a change in disposable income, the
A) more horizontal the consumption function. B) larger the MPC. C) more net taxes affect consumption. D) smaller is autonomous consumption. E) smaller the MPC.
Financial markets quickly eliminate unexploited profit opportunities through changes in
A) dividend payments. B) tax laws. C) asset prices. D) monetary policy.
When a firm practices perfect price discrimination,
a. Consumer surplus is maximized b. Producer surplus is minimized c. Producer surplus is maximized d. None of the above
Keynes argued that the primary determinant of the level of economic activity is
A. the amount of money there is to spend. B. the aggregate price level. C. the demand for labor. D. the aggregate demand for goods and services.