1. Suppose an economy is experiencing a positive demand shock. What will happen in the long run if the government doesn't intervene? (2 points)

	wages decrease; AD decrease; output decrease; unemployment decrease
	wages increase; AD increase; output increase; unemployment increase
	wages increase; AS decrease; output decrease; return to full employment
	wages decrease; AS increase; output increase; return to full employment
	wages increase; AS decrease; output increase; unemployment increase

2. An increase in income taxes, ceteris paribus, would ________ consumption, ________ unemployment, and ________ real output. (2 points)

	increase; increase; increase
	increase; decrease; increase
	increase; decrease; decrease
	decrease; increase; decrease
	decrease; increase; increase