(1)

If the supply curve and the demand curve for lettuce both shift to the right by an equal amount, what can we say about the resulting changes in equilibrium price and quantity?

Group of answer choices

The price will increase, but the quantity may increase or decrease.

The price will increase, and the quantity will increase.

The price will decrease, and the quantity will increase.

The price will stay the same, but the quantity will increase.

The price will stay the same, but the quantity will decrease.

(2)

Which of the following statements is false?

Group of answer choices

The shift factors for the demand curve are: income, preferences, prices of related goods, the number of buyers, and expectations of future price.

A change in (own) price changes the demand of a good.

A change in demand is graphically represented by a shift in the demand curve.

A change in quantity demanded is represented by a movement along a given demand curve.

(3)

Suppose that for a given good demand decreases and supply increases at the same time.If supply increases by a greater amount than demand decreases, then equilibrium price __________ and equilibrium quantity __________ for that good.

Group of answer choices

rises; rises

rises; falls

falls; rises

falls; falls

(4)

The long run equilibrium level of real output increases whenever:

Group of answer choices

aggregate demand (AD) increases.

short-run aggregate supply (SRAS) increases.

long-run aggregate supply (LRAS) increases.

Any of the above occurs.

(5)

Which of the following is not true of the long-run aggregate supply curve?

Group of answer choices

It is vertical.

The level of Real GDP supplied changes as the price level changes.

The level of Real GDP supplied changes with the levels of capital, land, labor, and technology available to the economy.

(6)

Which of the following will most likely cause an increase (shift to the right) in both the long-run and short-run aggregate supply curves?

Group of answer choices

an increase in the national debt

an increase in income tax rates

a decrease in the economy's rate of investment and capital formation

a technological improvement in robotics that substantially increases labor productivity

(7)

Which one of the following factors will most likely cause an increase in aggregate demand?

Group of answer choices

an increase in the expected inflation rate

an increase in the real interest rate

a decrease in net exports due to falling incomes abroad

a technological development that decreases the cost of producing computer chips

(8)

Which of the following will most likely increase aggregate supply in the long run?

Group of answer choices

unfavorable weather conditions in agricultural areas

an increase in the expected inflation rate

higher real interest rates

an increase in the rate of capital formation

(9)

Exhibit 1

Growth

Rate (%)

Years to

Double Economy

Nation A

?

18

Nation B

6

?

Nation C

?

10

Nation D

8

?

Refer toExhibit 1. Which nation enjoys the highest growth rate?

Group of answer choices

Nation A

Nation B

Nation C

Nation D

(10)

Which of the following statements is false?

Group of answer choices

If there is a shortage of50 units at a price of $3 per unit, the shortage will be less than 50 units at a price of $2 per unit.

If there is a shortage of 100 units at a price of $2 per unit, the shortage will be greater than 100 units at a price of $1 per unit.

If there is a surplus of 30 units at a price of $3, the surplus will be less than 30 units (or even nonexistent) at a price of $2.

If there is a surplus, suppliers will not be able to sell all they had hoped to sell at a particular price.

(11)

If potential buyers of good X expect the price of good X will soon rise, then the current

Group of answer choices

demand for good X will rise.

demand for good X will remain unchanged.

demand for good X will fall.

quantity demanded of good X will fall.

(12)

Technological advances:

Group of answer choices

Shift only the short run aggregate supply curve to the right.

Shift only the long run aggregate supply curve to the right.

Shift both short run and long run aggregate supply curves to the right.

Do none of the above