The government would want the economy to contract when real GDP is
A. Above potential GDP and the price level is falling
B. Below potential GDP in the price level is falling
C. Above potential GDP and the price level is rising
C. Above potential GDP and the price level is rising
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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
In what way does nationalism tend to be a hindering force in attaining modern economic growth and development, and in what way a facilitating force?
What will be an ideal response?
Refer to Figure 9.3. If the government establishes a price ceiling of $1.00, how many pounds of berries will be sold?
A) 200 B) 300 C) 400 D) 600 E) 800
In a perfectly competitive industry, the industry demand curve is ____, while in a monopolistic industry, the industry demand curve is:
a. horizontal; downward sloping b. downward sloping; horizontal. c. downward sloping; downward sloping. d. horizontal; horizontal.