Compared to the long-run absolute elasticity of demand, the short-run absolute elasticity of demand is
A) smaller.
B) the same.
C) larger.
D) either smaller or larger, depending on other factors.
Answer: A
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To fight inflation, the government may
A. decrease aggregate demand, which will also lead to lower unemployment rates. B. increase aggregate demand, which will also lead to lower unemployment rates. C. increase aggregate demand, which will also lead to higher unemployment rates. D. decrease aggregate demand, which will also lead to higher unemployment rates.
Positive economics is an approach to economics that
A. analyzes outcomes of economic behavior, evaluates them as good or bad, and may prescribe preferred courses of action. B. examines the role of government in the economy. C. seeks to understand behavior and the operation of systems while making judgments about their usefulness to society. D. seeks to understand behavior and the operation of systems without making judgments.
Refer to the information provided in Figure 7.10 below to answer the question(s) that follow. 
Figure 7.10Refer to Figure 7.10. If this firm's cost of capital is $20 per unit and its cost of labor is $10 per unit, the isocost line represents a total cost of
A. $2,000. B. $3,000. C. $4,000. D. $8,000.
Beyond the Fed's immediate control, a wave of pessimistic economic forecasts in the banking industry can effectively ________ e and thus ________ the money supply
A) raise, raise B) raise, reduce C) reduce, raise D) reduce, reduce