If you buy a book of U.S. postage stamps to use to mail love letters to your sweetheart, the purchase is considered part of:

In the Keynesian model, suppose the Fed wants to keep output unchanged. If the IS curve shifts to the left, and the Fed acts to keep output unchanged, then

A) taxes will increase. B) the money supply will decline. C) the real interest rate will decrease. D) taxes will decrease.

The above figure shows a graph of the market for pizzas in a large town. Suppose that concern over dietary habits has led the government to impose a restriction that limits suppliers to produce no more than 40 pizzas

What will the price of pizza be as a result of this quota? A) $2 B) $7 C) $8 D) $10