The long-run aggregate supply curve will shift to the right if the:
A. potential output of the economy expands.
B. economy loses productive capacity.
C. economy experiences a supply shock.
D. profit levels of firms increase.
A. potential output of the economy expands.
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When a Clarke tax is used to finance a public good, each person's tax equals
a. the amount that he is willing to pay for the good. b. the difference between the value he places on the public good and its cost. c. the cost of the public good minus the value that other people claim to receive from it. d. everyone else's tax, with the sum equaling the cost of producing the public good.
In 1947, which of the following activities were not made illegal for labor unions to do?
a. Coerce employees who are working at a firm to join a union b. Discriminate against employees c. Encourage employees to engage in a strike to force one employer to cease doing business with another employer d. Collect membership dues
Purchases of ________ are the most volatile type of expenditures because they are very sensitive to the interest rate, which is highly volatile.
A. new cars B. nondurables C. new houses D. stocks
Refer to the information provided in Figure 7.2 below to answer the question(s) that follow. 
Figure 7.2Refer to Figure 7.2. The average product with two workers is ________ lawns mowed.
A. 4 B. 5 C. 5.5 D. 11