If crude oil is a variable factor of production for a firm, then an increase in the price of crude oil will lead to:
A. a decrease in the firm's supply.
B. a decrease in the quantity supplied by the firm, but no change in the firm's supply.
C. an increase in the firm's supply.
D. an increase in the quantity supplied by the firm, but no change in the firm's supply.
Answer: A
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
Explain the total revenue test
What will be an ideal response?
German luxury car exports were hurt in 2009 as a result of the recession. How would this decrease in exports have affected Germany's aggregate demand curve?
A) The aggregate demand curve would have shifted to the right. B) The aggregate demand curve would not have shifted, but there would have been a movement up the aggregate demand curve. C) The aggregate demand curve would have shifted to the left. D) The aggregate demand curve would not have shifted, but there would have been a movement down the aggregate demand curve.
Voluntary free trade results in:
a. population growth. b. inflation. c. higher living standards. d. income disparity. e. unemployment.