1. Measures of average workweeks and building permits for new housing units are included in the index of

leading indicators, because shorter workweeks tend to indicate _____ future economic activity and increased

permits for new units tend to indicate _____ future economic activity.

a. stronger; stronger

b. stronger; weaker

c. weaker; stronger

d. weaker; weaker

2. Long-run growth in real gross domestic product (GDP) is determined primarily by _____, while short-run

movements in real GDP are associated with _____.

a. variations in labor-market utilization; technological progress

b. technological progress; variations in labor-market utilization

c. money supply growth rates; changes in velocity

d. changes in velocity; money supply growth rates

3. In the aggregate demand-aggregate supply model, short-run equilibrium occurs at the combination of output

and prices where:

a. aggregate demand equals long-run aggregate supply.

b. aggregate demand equals short-run aggregate supply.

c. aggregate demand equals short-run and long-run aggregate supply.

d. short-run aggregate supply equals long-run aggregate supply