1. Which of the following best represents the actual output produced within an economy? (A) The full employment output (B) The point at which the aggregate demand curve intersects the long-run aggregate supply curve (C) The point at which the short-run aggregate supply curve intersects the long-run aggregate supply curve (D) The point at which the short-run aggregate supply curve intersects the aggregate demand curve (E) The point at which the aggregate demand curve is vertical

2. If the short-run aggregate supply curve increases, the price level will ___ and the amount of output will ___ in the short run. (A) increase; increase (B) decrease; increase (C) decrease; remain unchanged (D) remain unchanged; increase (E) decrease; decrease

3. All else equal, if there is an increase in the nominal wage rate, the price level will ___ and the amount of aggregate output will ___ in the short run. (A) increase; decrease (B) increase; increase (C) increase; remain unchanged (D) remain unchanged; increase (E) decrease; decrease

4. Fredonia has experienced an increase in the exports that they sell to their neighbor Thereading. In the short run, the real gross domestic product (GDP) of Fredonia will ___ and the price level of Fredonia will ___. (A) increase; decrease (B) decrease; decrease (C) increase; increase (D) increase; remain unchanged (E) decrease; increase

5. Texomabourg has experienced a decline in real income of households. Therefore, the ___ curve will ___ and aggregate output will ___. (A) aggregate demand; decrease; decrease (B) short-run aggregate supply, increase; decrease (C) aggregate demand; increase; decrease (D) long-run aggregate supply; increase; increase (E) long-run aggregate supply; increase; increase

18. When an economy experiences a supply shock, (A) output and the price level move in the same direction, but unemployment moves in the opposite direction (B) output and unemployment move in the same direction, but the price level moves in the opposite direction (C) the price level and unemployment move in the same direction, but output moves in the opposite direction (D) output, unemployment, and the price level all move in the same direction (E) output and unemployment move in the same direction, but the price level is unaffected

19. Which of the following could cause inflation in the short run? (A) An increase in the price of an energy source such as natural gas (B) A decrease in consumer incomes (C) A decrease in the wage rate (D) An increase in the amount of imports (E) A decrease in the amount of exports