(1)

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

(2)

What impact did the soaring oil prices of 2007 and the first half of 2008 have on the economy?

Group of answer choices

They increased short-run aggregate supply (SRAS), causing real output and employment to increase.

They reduced short-run aggregate supply (SRAS), causing real output and employment to increase.

They increased short-run aggregate supply (SRAS), causing real output and employment to decline.

They reduced short-run aggregate supply (SRAS), causing real output and employment to decline.

(3)

Within the framework of the aggregate demand and supply model (AD-AS model), if consumers and investors become more pessimistic about the future direction of the economy, this will lead to

Group of answer choices

an increase in aggregate demand.

a decrease in aggregate demand.

an increase in long-run aggregate supply (LRAS shifts to the right).

a reduction in the natural rate of unemployment.

(4)

If coffee and green tea are substitutes, then

Group of answer choices

a fall in the price of green tea will increase the demand for coffee and, other things being equal, the price of coffee will rise.

a rise in the price of green tea will decrease the demand for coffee and, other things being equal, the price of coffee will rise.

a fall in the price of green tea will decrease the demand for coffee and, other things being equal, the price of coffee will fall.

a rise in the price of green tea will decrease the demand for coffee and, other things being equal, the price of coffee will decrease.

a rise in the price of green tea will increase the demand for coffee and, other things being equal, the price of coffee will decrease.

(5)

If computers and software are complements, then

Group of answer choices

other things being equal, a fall in the price of computers will increase the demand for software and, the price of software will fall.

other things being equal, a rise in the price of computers will decrease the demand for software and, the price of software will fall.

other things being equal, a fall in the price of computers will decrease the demand for software and, the price of software will fall.

other things being equal, a rise in the price of software will increase the demand for computers and, the price of computers will rise.

other things being equal, a fall in the price of software will decrease the demand for computers and, the price of computers will fall.

(6)

A leftward shift in the demand curve for tennis balls could be caused by

Group of answer choices

a rise in the price of tennis balls.

a fall in the price of tennis rackets.

a rise in the price of tennis lessons.

an increase in income, assuming tennis balls are a normal good.

(7)

If the supply of and demand for a product increase at the same time, then equilibrium

Group of answer choices

quantity and equilibrium price must both decline.

quantity must decline, but equilibrium price may either rise, fall, or remain unchanged.

price must fall, but equilibrium quantity may either rise, fall, or remain unchanged.

quantity must increase, but equilibrium price may either rise, fall, or remain unchanged.

(8)

Labor is a resource that is necessary to produce many goods. "If the price of labor rises," says the economist, "the prices of goods will soon follow." How does this work?

Group of answer choices

If the price of labor rises, the supply of goods falls, and the prices of those goods fall.

If the price of labor rises, the supply of goods falls, and the prices of those goods rise.

If the price of labor rises, the demand for goods rises, and the prices of those goods rise.

If the price of labor rises, the supply for goods rises, and the prices of those goods fall.

If the price of labor rises, the supply of goods rises, and the prices of those goods rise.

(9)

When the economy is operating at an output rate less than full-employment capacity,

Group of answer choices

a strong demand for resources will cause resource prices to rise.

actual unemployment will be less than the natural rate of unemployment.

the rate of inflation will tend to rise.

weak demand for investment will place downward pressure on real interest rates.

(10)

Which of the following will most likely occur as the result of an unanticipated increase in aggregate demand that pushes output beyond long-run capacity?

Group of answer choices

an increase in the natural rate of unemployment

an increase in the real interest rate

a decrease in the real interest rate

a decrease in the general level of prices

(11)

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

(12)

Which of the following will most likely result from an unanticipated decrease in aggregate supply due to unfavorable weather conditions in agricultural areas?

Group of answer choices

a decrease in inflation

a decrease in unemployment

a decrease in the general level of prices

an increase in the general level of prices

(13)

If real GDP per capita is increasing, the rate of population growth is:

Group of answer choices

less than the rate of real GDP growth.

greater than the rate of real GDP growth.

less than the rate of inflation.

greater than the rate of inflation.