1. If business taxes decrease, economists would say that this was a

A	positive demand shock that shifts AD to the left.
B	positive demand shock that shifts AD to the right.
C	positive demand shock that shifts SRAS to the right.
D	positive supply shock that shifts SRAS to the right.
E	positive supply shock that shifts SRAS to the left.

2. If imports to the United States increased, what would most likely happen to price level and real gross domestic product?

Price Level / Real GDP

A	Increase / Increase
B	Increase / Decrease
C	Indeterminate / Increase
D	Decrease / Decrease
E	Decrease / Increase

3. For the question below, an explanation of the short-run effect (including the determinant of AD or AS that is causing the shift, the line that shifts (AD or AS), the direction of the shift (left or right), and the impact on output and price level (increase or decrease) and submit a properly drawn and labeled aggregate demand and aggregate supply graph for the scenario. Make sure your name and assignment number are written on each page of graphs you submit. All text must be written in the text box provided. Assume that over the next ten years, the level of educational attainment in the US increases significantly.

4. For the question below, an explanation of the short-run effect (including the determinant of AD or AS that is causing the shift, the line that shifts (AD or AS), the direction of the shift (left or right), and the impact on output and price level (increase or decrease) and submit a properly drawn and labeled aggregate demand and aggregate supply graph for the scenario. Make sure your name and assignment number are written on each page of graphs you submit. All text must be written in the text box provided. Congress votes to cut spending on the space program.