1.

(03.03 LC) An increase in the price level corresponds to (5 points)

	a decrease in aggregate demand
	an increase in aggregate supply
	movement along the aggregate supply curve
	an inflationary gap
	a recessionary gap

2.

(03.03 MC) Which of the following would correspond to a decrease in real output due to an increase in energy prices? (5 points)

	A shift of the aggregate demand curve to the left
	Movement left and down along the short-run aggregate supply curve
	Movement right and up along the short-run aggregate supply curve
	A shift of the short-run aggregate supply curve to the left
	A shift of the short-run aggregate supply curve to the right

3.

(03.03 LC) In the short run, movement along the SRAS curve____ corresponds to ______ in the unemployment rate, all else being equal. (5 points)

	left to right; an increase
	left to right; a decrease
	left to right; an indeterminate change
	right to left; an indeterminate change
	right to left; a decrease

4.

(03.03 MC) A decrease in energy prices in the short run generally (5 points)

	decreases real output
	increases nominal output but not real output
	increases real output
	corresponds to an increase in the unemployment rate
	has no impact on either nominal or real output

5.

(03.03 HC) If the labor force participation rate increases, which of the following would happen to short-run aggregate supply? (5 points)

	A shift of the AD curve to the left
	Movement left and down along the SRAS curve
	Movement right and up along the SRAS curve
	A shift of the SRAS curve to the left
	A shift of the SRAS curve to the right