An increase in demand will cause a relatively small increase in price when:
A. the increase in demand is small.
B. demand is highly elastic.
C. supply is highly elastic.
D. All of these
Answer: D
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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
As a consumer consumes more and more of a product in a particular time period, eventually marginal utility
A) fluctuates. B) rises. C) is constant. D) declines.
The cost of holding money balances increases when
a. the purchasing power of money rises. b. the money interest rate increases. c. the price of goods and services falls. d. consumer income expands.
Per capita GDP will definitely fall if
A. The rate of economic growth is less than the rate of population growth. B. There is a decrease in the size of the working population. C. The population falls. D. The rate of economic growth falls.