The slope of an indifference curve for products X and Y is the ratio of the marginal utility of product X to the marginal utility of product Y.
Answer the following statement true (T) or false (F)
True
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Use the following graph for a competitive market to answer the question below.
Assume the government imposes a $3 tax on buyers, which results in a shift of the demand curve from D1 to D2. The price the consumer pays for the product after the tax is imposed on the buyer is
A. $7. B. $3. C. $8. D. $5.
If this is a closed economy, how many bikes will be produced? 
A. 50,000 thousand B. 100,000 thousand C. 80,000 thousand D. 20,000 thousand
In the basic Keynesian model, a decrease in government purchases:
A. increases short-run equilibrium output. B. increases potential output. C. reduces potential output. D. reduces short-run equilibrium output.