Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward
B. Short-run aggregate supply shifting upward
C. Short-run aggregate supply shifting downward
D. Aggregate demand shifting leftward
Answer: B
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Suppose a frost destroys the tomato crop in California but farmers see an increase in their revenues. Which of the following best explains this?
A) Tomatoes are necessities. B) The demand for tomatoes is price inelastic. C) The decrease in supply led to huge price increases. D) The cross-price elasticity between tomatoes and most other substitute vegetables is very low.
What is the approximate price of a $10,000 coupon bond that pays $1,000 in one year and $1,000 in two years at maturity? The effective yield on the bond is 6 percent
A) $10,000 B) $10,730 C) $10,900 D) $12,000
The demand for a resource is derived mainly from the demand for ___________.
Fill in the blank(s) with the appropriate word(s).
The output of MP3 players should be:
A. reduced if marginal benefits exceed marginal costs. B. reduced if marginal costs exceed marginal benefits. C. increased if marginal costs exceed marginal benefits. D. reduced to zero if their unit costs exceed the unit costs of alternative products.