Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C
B. Falling; A; C
C. Falling; A; B
D. Rising; A; C
Answer: D
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The result of the large tax cuts in the first Reagan Administration demonstrated very convincingly that Arthur Laffer was correct when he asserted that cuts in tax rates would increase tax revenue
a. True b. False Indicate whether the statement is true or false
Refer to the graph shown. The cost of 5 units of labor and 6 2/3 units of machines is the same as the cost of:
A. 5 units of labor and 10 units of machines. B. 15 units of labor and 2 units of machines. C. 10 units of labor and 10 units of machines. D. 7.5 units of labor and 5 units of machines.
Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question.
After trade, at a world price of Pw, total economic surplus equals area(s)
A. A + B + C + D + E + F. B. A + B + C + E + F + J + I. C. D. D. A + B + C + D.
Refer to the diagram. Suppose that point y represents the optimal combination of civilian goods and defense goods. We can conclude that at y the marginal benefit of defense goods:
A. exceeds the marginal cost of defense goods.
B. equals the marginal cost of defense goods.
C. is zero.
D. is negative.