In the aggregate demand-aggregate supply model, the short-run effects of an unanticipated increase in the money supply will be
a. lower real interest rates and an increase in aggregate demand.
b. higher real interest rates and an increase in aggregate demand.
c. lower real interest rates and a reduction in aggregate demand.
d. higher real interest rates and a reduction in aggregate demand.
A
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Because monopoly firms do not have to compete with other firms, the outcome in a market with a monopoly is often
a. not in the best interest of society. b. one that fails to maximize total economic well-being. c. inefficient. d. All of the above are correct.
Explain the concept of market failure
Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
If GDP grows more rapidly than population for a particular country over a period of time, then we can determine that
A. GDP must rise at a slower rate in the future. B. GDP per capita has increased. C. All citizens of this country are better off. D. Real GDP has decreased.