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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Billie spends all of her income on soccer balls and jeans, and the price of a pair of jeans is three times the price of soccer balls. In order to maximize total utility, Billie should
a. buy three times as many soccer balls as pairs of jeans. b. buy three times as many pairs of jeans as soccer balls. c. buy both items until the marginal utility of soccer balls is three times the marginal utility of a pair of jeans. d. buy both items until the marginal utility of a pair of jeans is three times the marginal utility of soccer balls.
Is increased production of a good beneficial to society?
A. Yes, because scarcity is such an overriding concern. B. Yes, because more is always better. C. Maybe, it depends on what is foregone. D. No, because increased production does not increase utility.
Which of the following would likely cause the dollar to depreciate?
a) Rising interest rates in the United States. b) An increase in United State citizens' preference for foreign goods. c) Income growth of the United States lagging behind that of other countries. d) Lower inflation in the United States.
In a binding situation, a positive cost shock will cause ________ in output and ________ in the price level.
A. no change; no change B. a decrease; no change C. no change; an increase D. a decrease; an increase