Suppose that severe floods destroyed farms, homes, and businesses in the Midwest. Use the aggregate demand/aggregate supply model, to explain the changes you would expect to take place and the effects you would expect these floods to have on both output and prices. (Include both short-run and long-run effects.)
The destruction of output and the temporary business stoppage would reduce short-run aggregate supply, causing an increase in prices and a reduction in output. In the long run, however, the crops will be regrown and businesses will open, causing short-run aggregate supply to shift back to its original level. In the long run, output and prices will be unaffected.
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Refer to Figure 8.2. Holding other variables constant, an increase in the real wage will result in a
A) movement from point A to point B. B) movement from point B to point A. C) shift from curve S1 to curve S2. D) shift from curve S2 to curve S1.
How many districts does the Federal Reserve System have?
a. 50 b. 1 c. 12 d. 51 e. 4
Refer to the information provided in Figure 7.5 below to answer the question(s) that follow. 
Figure 7.5Refer to Figure 7.5. Diminishing marginal returns set in after the ________ worker is hired.
A. first B. fifth C. eighth D. sixteenth
An oligopoly with a dominant price leader will produce a level of output
A. between that which would prevail under competition and that which a monopolist would choose in the same industry. B. that would prevail under competition. C. between that which would prevail under competition and that which a monopolistic competitor would choose in the same industry. D. equal to what a monopolist would choose in the same industry.