If the economy is at full employment and war breaks out, we would move from
A. W to X.
B. X to W.
C. X to Y.
D. Y to X.
C. X to Y.
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A vertical line has a slope of
A. infinity. B. zero. C. undefined. D. 1,000
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
Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
The goods market adjusts to an equilibrium right at the point of the Keynesian cross. Why?
a. At that point, the Keynesian theory of sticky prices b. At only that point, total spending is equal to total production. c. At only that point, consumers are fully satisfied and firms have maximized profits. d. At only that point, the unemployment rate is zero and workers need not seek higher wages.