In the figure above, what would happen to the size of the multiplier if marginal income tax rates were increased?
A) The multiplier would fall in value and might become negative.
B) The multiplier would not change in value.
C) The multiplier would fall in value but would not become negative.
D) The multiplier would rise in value.
E) More information is needed to determine the effect on the size of the multiplier.
C
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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
Why do the airlines charge less for passengers who stay over Saturday night and purchase their tickets two weeks in advance?
Refer to Figure 20.2. If the area 0P1AB is less than the area 0P2CD, we can conclude that the price elasticity of demand between point A and point C is
A. Elastic. B. Unitary elastic. C. Inelastic. D. Impossible to determine. It depends on whether the price has increased or decreased.
Many economists estimate that for every 10% increase in relative minimum wage rates, there is a corresponding decrease in employment of those affected equal to
A) 5-10%. B) 1-2%. C) 10-20%. D) 30-40%.