In the diagram below, profit is maximized at point 
A. C.
B. D.
C. B.
D. A.
Answer: A
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In the above figure, if we start at AD1 and SRAS1, and the money supply increases unexpectedly, what would be the long-run equilibrium?
A) E3 B) E1 C) P1 D) E2
An increase in the domestic real interest rate will tend to cause, other things the same ________
A) a depreciation of the domestic currency B) an increase in the demand for domestic goods and services C) an increase in demand for foreign currencies D) an appreciation of the domestic currency
The main components of spending, which can cause changes in aggregate demand, are: a. consumption, investment, government purchases, and net exports
b. consumption, investment, government purchases, and imports. c. investment, savings, replacement of depreciated equipment, and spending. d. consumption, savings, government purchases, and exports.
When you think about investments in capital goods, the one category that is most important and, at least in the long run, yields the highest returns is investment in
a. infrastructure b. raw material extraction c. factories d. education and health e. machinery