The differing elasticities of the supply and demand curves for labor mean that the burden of the payroll tax is placed mostly on ______.
a. investors
b. government
c. firms
d. workers
d. workers
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If, in the market for money, the amount of money supplied exceeds the amount of money households and businesses want to hold, the interest rate will
A. fall, causing households and businesses to hold less money. B. rise, causing households and businesses to hold more money. C. fall, causing households and businesses to hold more money. D. rise, causing households and businesses to hold less money.
High transactions costs are reflected in
A) wide bid-asked spreads. B) narrow bid-asked spreads. C) high equilibrium prices. D) low equilibrium prices.
Using the AD-AS model, if consumers and business become more optimistic about the future direction of the economy and increase spending, then:
a. aggregate demand will decrease. b. aggregate demand will increase. c. long-run aggregate supply will increase. d. long-run aggregate supply will decrease.
Use the following saving schedule to answer the next question. 
Dissaving occurs when disposable income is
A. equal to level 2. B. less than level 2. C. equal to level 3. D. greater than level 2.