The current price floor in the agricultural lettuce market makes it such that price of lettuce is 25% higher than equilibrium price and 100 heads of lettuce are demanded
Assuming that the elasticity of demand for lettuce is -0.50, what would be the equilibrium price and quantity of lettuce if the government removed the current price floor?
A) Price = 0.875, Quantity = 125
B) Price = 1, Quantity = 112.5
C) Price = $0.75, Quantity = 112.5
D) Price = $0.75, Quantity = 125
C
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Based on the figure, the economy is initially in long-run equilibrium at point A. If there is a favorable supply shock that increases potential output and shifts the long-run aggregate supply curve from LRAS to LRAS', then the new long-run equilibrium is reached at point: 
A. B B. D C. E D. C
Keynesian policy suggests that if inflationary rises in the price level are a concern, the response would be contractionary fiscal policy, using tax increases or government spending cuts to shift AD to the left. What would the result be in this scenario?
a. The result would be downward pressure on the price level, very little reduction in output but a large rise in unemployment. b. The result would be downward pressure on the price level, but very little reduction in output or very little rise in unemployment. c. The result would be downward pressure on the price level, a large reduction in output but very little rise in unemployment. d. The result would be downward pressure on the price level, but a large reduction in output and a large rise in unemployment.
Current critics of fiat money are urging governments to do what?
A. Move to a system of electronic transactions only. B. Return to a gold standard. C. Place limits on the creation. D. Return to a system of legal tender.
According to your authors, the United States would probably not have experienced tremendous economic growth between 1800 and 1870 were it not for
A) slavery. B) sharecropping. C) antitrust legislation. D) balanced federal budgets. E) technological innovation.