Work by Doug Diamond and Philip Dybvig in the 1980s had clarified the nature of
A) unemployment.
B) bank runs.
C) inflation.
D) growth.
B
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
If the expenditures multiplier in an economy is 3 and the government wants to increase aggregate demand by $12 billion at all price levels, it should cut taxes by
A. $9 billion. B. $12 billion. C. $6 billion. D. $3 billion.
What is the Laffer curve and why is it unlikely that the United States is on the "wrong" side of it?
What will be an ideal response?
Which of the following is NOT a reason why economists are interested in understanding consumer behavior?
A. Economists are often called upon to evaluate public policies that impact the well-being of consumers. B. It is important for businesses to be able to accurately predict consumers' choices. C. Economists want to understand the conditions under which trade will take place. D. Economists want to predict the value of a company's stock.