A horizontal aggregate supply curve reflects the assumption that the
A) price level is constant.
B) velocity of money is constant.
C) saving rate is equal to zero.
D) economy is at full employment.
A
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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
Which of the following terms describes the situation in which all resources are able to move to to highest-valued uses via voluntary exchange?
A) government intervention B) a market failure C) economic efficiency D) an externality
A statement of fact that can be verified by observation is
a. an abstraction b. a positive statement c. a normative statement d. a philosophical conundrum e. the basis of an assumption
Accurate measurement of GDP is important to business decision-makers because this information will help them better determine the
a. general happiness of a country's citizens. b. course of the economy and the direction of demand for their products. c. economic well-being of a particular group within a country. d. amount of leisure time available and the quality of life in a country.