An increase in investment spending will be multiplied into a larger increase in GDP illustrates the concept of
A. expansionary fiscal policy.
B. the multiplier.
C. an inflationary boom.
D. international trade.
Answer: B
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The business cycle ________ on Delta Airlines since the company's inception over 80 years ago
A) has always had a negative effect B) has had virtually no effect C) has always had a positive effect D) has had a large effect
Which of the following macroeconomic variables would be drawn accurately as perfectly inelastic?
A. Aggregate demand B. Short-run aggregate supply C. Long-run aggregate supply D. None of these should be drawn as perfectly inelastic.
In an industry characterized by a natural monopoly, which of the following characteristics will be observed?
a. The long-run average cost curve will be upward sloping. b. The market price of the product will be very low. c. Competition is both impossible and inefficient. d. Number of producers operating in this market will be low.
The accompanying graph shows the cost curves for Moe's mushroom gathering business, which is perfectly competitive. 
In the graph above, the average variable cost curve is labeled ________, the average total cost curve is labeled ________, and the marginal cost curve is labeled ________.
A. C; B; A B. C; A; B C. B; C; A D. A; B; C