Figure 33.3 illustrate four different Lorenz curves. Assume Brazil has a larger Gini coefficient than the United States. If the income distribution for the United States is represented by curve C, which curve would must represent the income distribution for Brazil?
A. A.
B. B.
C. C.
D. D.
Answer: D
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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
A law requiring the government to balance its budget in each year would serve as an automatic destabilizer
Indicate whether the statement is true or false
In order for a central planner to achieve the invisible-hand type efficiency of a free market, the planner would
a. need masses of statistics. b. be required to makes enormous calculations. c. need to be able to measure a consumer's marginal utility in order to equate MU with MC. d. All of the above would be required.
Pam sees that the price of bananas has risen in the grocery store. All else equal, she decides to buy more tangerines than she normally purchases. From the information given, you might conclude that:
A. tangerines and bananas are substitutes. B. bananas are a luxury good. C. tangerines are an inferior good. D. tangerines and bananas are complements.