1. Along a SRAS curve

a. inflationary expectations are fixed

b. inflation rates are fixed

c. real growth are fixed

d. all of the above

2. If actual inflation is greater than expected inflation

a. real labor costs are unusually low

b. the real growth rate is unusually low

c. inflation is unusually low

d. all of the above

3. An unexpected decrease in velocity causes which of the following to occur in the short-run?

a. unusually low inflation

b. unusually high labor costs

c. low real growth

d. all of the above

4. In which of the following situations will real growth be unusually high?

Expected Inflation Actual Inflation

a. 5% 7%

b. 3% 1%

c. 6% 6%

d. 7% -10%

5. An unexpected increase in money growth will cause real growth to in the short run and long-run.

a. increase, increase

b. increase, remain the same

c. remain the same, increase

d. remain the same, remain the same