Exhibit 14-7 Aggregate supply and demand curves
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In Exhibit 14-7, if aggregate demand increases from AD1 to AD2,
A. output and prices will increase.
B. output and prices will decrease.
C. output alone will increase.
D. prices alone will increase.
Answer: D
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When drawn against the real interest rate, the output demand curve unambiguously shifts to the right if either or both of the following occur
A) an increase in current taxes and an increase in future taxes B) an increase in current taxes and a decrease in future taxes C) a decrease in current taxes and an increase in future taxes D) a decrease in current taxes and a decrease in future taxes
If a firm employs an extra unit of labor, the additional product generated by employing the extra unit of labor is
A) the marginal physical product of labor. B) the diminished marginal product. C) the outside edge. D) total product.
Under the system of fractional reserve banking, the reserve requirement is the ratio of excess reserves to total reserves
a. True b. False Indicate whether the statement is true or false
For a single seller, the figure below shows the relationship between the number of units produced and the opportunity cost of producing an additional unit of output. If the market consists of 50 identical sellers, how much would be supplied in the market at a price of $14 per unit? 
A. 17,500 B. 350 C. 175,000 D. 1,750