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
Answer: D
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Usury laws first originated in the United States in the 1970s in response to high market interest rates
Indicate whether the statement is true or false
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
Suppose that 25 units of X and 16 units of Y give a consumer the same satisfaction as 15 units of X and 18 units of Y. Then
A. the consumer can exchange five units of X for one unit of Y and keep utility unchanged. B. the consumer can exchange one unit of X for 1/5 unit of Y and keep utility unchanged. C. the market rate of exchange of X for Y is 1/5. D. both a and b E. all of the above
A firm produces 200 pop-up speakers at an average total cost of $27 and an average variable cost of $24. What is the firm's level of total fixed cost?
a. $3 b. $200 c. $600 d. $4,800