An inflation shock that shifts the short-run aggregate supply curve leftward and leaves the long-run supply curve unchanged means the economy's potential level of output will:
A. increase.
B. decrease.
C. decrease only if monetary policymakers do not respond.
D. not change.
Answer: D
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Suppose a manager is deciding how to allocate workers between two plants. The marginal product of labor in plant 1 is 10 units of output. The marginal product of labor in plant 2 is 14 units of labor. What should the manager do?
A. Reallocate workers from plant 1 to plant 2, because MPL is greater in plant 1 than in plant 2. B. Reallocate workers from plant 1 to plant 2, because MPL is greater in plant 2 than in plant 1. C. Reallocate workers from plant 2 to plant 1, because MPL is greater in plant 1 than in plant 2. D. Reallocate workers from plant 2 to plant 1, because MPL is greater in plant 1 than in plant 1.
A ________ card purchase takes money out of your checking account.
Fill in the blank(s) with the appropriate word(s).
In the long run, if some monopolistically competitive firms are earning economic losses then
A) firms will leave the industry. B) raise prices until they earn economic profits. C) they will increase production until marginal costs fall. D) new firms will enter the industry.
Refer to the information provided in Figure 15.2 below to answer the question(s) that follow. 
Figure 15.2 Refer to Figure 15.2. At We Do Hair, a monopolistically competitive firm, the ________ perm is $32.
A. marginal cost of a B. profit-maximizing price for a C. average total cost of a D. profit on each