Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary
B. B; no output
C. B; expansionary
D. A; a recessionary
Answer: A
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The baby boomers born in the 1940s and 1950s began entering the work force in the 1960s and 1970s
This demographic event ________ the natural unemployment rate, thereby shifting the short-run Phillips curve ________ and shifting the long-run Phillips curve ________. A) increased; rightward; leftward B) decreased; rightward; rightward C) increased; rightward; rightward D) decreased; leftward; leftward E) increased; leftward; rightward
GDP is not a perfect measure of well-being because
A) the value of leisure is included in GDP. B) GDP is adjusted for increases in drug addiction. C) GDP is not adjusted for pollution. D) GDP is adjusted for changes in crime rates.
A brand name can be a source of market power
Indicate whether the statement is true or false
Any event that decreases the value of the marginal product of labor will:
A. increase labor supply. B. decrease labor supply. C. increase labor demand. D. decrease labor demand.