BrainMass Quizzes Basics of Economics Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood. 1 If both demand and supply increase, the equilibrium price will: rise fall stay the same all of the above 2 If a $50 b tax cut results in a $200 b increase in GDP, the expenditures multiplier's value is: 5 -4 4 -5 3 If demand is price-elastic, the firm can increase sales revenues by: raising prices lowering prices none of the above 4 If economies of scale are present the average cost as output expands will: fall stay the same rise 5 To increase the quantity of money in a system, the central bank should: reduce taxes buy securities in the open market sell securities in the open market Submit Quiz