Assuming an economy starts in long-run equilibrium, if the aggregate demand curve were to decrease:
A. the long-run effect would be a lower price level.
B. output in the economy would increase.
C. prices in the economy would increase.
D. the short-run aggregate supply curve would shift left.
Answer: A
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When economists say that private investment is "autonomous," they mean that it:
a. will never change. b. is not dependent on the current level of disposable income. c. is determined by the "animal spirits" of business decision makers. d. is determined by the level of saving.
The possibility of nonpayment is taken into account in the calculation of the present discounted value.
Answer the following statement true (T) or false (F)
Given the table below, what is average total cost when 200 units of output are produced? 
A. $4.00 B. $2.30 C. $2.50 D. $4.80 E. none of the above
Other things equal, a reduction in income taxes would:
A. reduce productivity and reduce aggregate supply. B. increase consumption and increase aggregate demand. C. increase the supply of money and reduce investment. D. increase government spending and increase aggregate demand.