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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American consumers learn that grape consumption can reduce the incidence of heart disease. Everything else being equal, this will cause the
A. price of grapes to fall and decrease the quantity supplied. B. supply of grapes to fall and the quantity demanded to increase. C. quantity supplied of grapes to fall. D. demand curve for grapes to shift to the right and increase the quantity supplied.
Which of the following statements is correct?
A. Because it is subject to change, and frequently does, consumer and business confidence has only a minimal impact on future economic activity. B. Because it has historically remained steady, consumer and business confidence has only a minimal impact on future economic activity. C. Consumer and business confidence is extremely important and can have a great impact on future economic activity. D. Consumer confidence is extremely important and can have a great impact on future economic activity. The same is not true of business confidence.
Even though household have wide-ranging preferences, discuss some of the things that all households have in common including their constraints
What will be an ideal response?
The construction of the t-statistic for a one- and a two-sided hypothesis
A) depends on the critical value from the appropriate distribution. B) is the same. C) is different since the critical value must be 1.645 for the one-sided hypothesis, but 1.96 for the two-sided hypothesis (using a 5% probability for the Type I error). D) uses ±1.96 for the two-sided test, but only +1.96 for the one-sided test.