As the aggregate demand curve shifts to the right, what happens to the price level and output? What do these changes imply happens to the inflation rate and the unemployment rate?
The price level and output rise. As the price level rises, the inflation rate is higher. As output is higher the unemployment rate is lower.
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From 1800-1860 which part of the nation was most opposed to high tariffs?
a. South. b. New England. c. Middle Atlantic States. d. Far Western States.
Which statement is true?
A. The United States has a larger national output than any other country in the world. B. We have had recessions about every three years since World War II. C. There were no recessions while Ronald Reagan was president. D. None of the statements are true.
Suppose that a regulatory agency has imposed marginal cost pricing on a natural monopolist. We expect that
A. the firm will rise its price above marginal cost. B. the firm will earn only a normal profit. C. the firm will earn economic losses. D. the firm's average total cost of production is rising over the relevant range of production.
Referring to Figure 4.1, the increase in output from point B to C is greater than the increase in output from point C to D because 
A. better workers are usually hired after the earlier ones. B. more workers always produce more. C. eventually workers are up against the fact that there are fixed inputs and more workers do not add as much. D. a small number of workers cannot take as good advantage of the division of labor as a larger number.