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10. For barter to occur there has to be a. a single coincidence of wants b. a formal market where prices are quoted c. a

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10. For barter to occur there has to be a. a single coincidence of wants b. a formal market where prices are quoted c. a double coincidence of wants d. a commodity to serve as a medium of exchange 11. A change in all but which one of the following would be associated with a shift in the consumption function? a. Wealth b. Interest rates c. Current disposable income d. The price level 12. If the government increases aggregate demand when the economy is at both short- run (1W1, Long -run equilibrium, the full long-run effect of this scal policy will be to a. increase the price level b. decrease both real GDP and the price level c. Increase either the real GDP or the price level, depending on the length of the time lag d. increase real GDP 13. According to the classical model a. the market is a self correcting mechanism b. economic problems get worse overtime c. the economy will often experience recessions and expansions d. recessions will often require government intervention 14. An increase in growth rates will cause the production possibilities curve to a. become atter b. shift outward c. become steeper d. shift inward 15. If an increase in prices is matched by an increase in incomes such that there is no change in disposable income, then a. there should be no effect in the consumption function b. the increase in prices will lead to a movement along the consumption function c. then the MPC will decline d. the change in income will cause consumer spending to increase 16. if interest rates rise but real investment spending still increases, what must have happened to the function relating investment to the interest rate? a. there was a movement down the function relating investment to the interest rate b. it shifted to the right c. shifted to the left cl. there was a movement up the function relating investment to the interest rate 17. In a barter system, we would expect to see a. many different units of money b. goods traded directly for other goods and services c. one generally accepted monetary unit d. money and goods exchanged for each other 18. When money is accepted as payment in a market transaction, it is functioning as a a. medium of exchange b. store of value c. unit of investment d. unit of account 19. All of the following actions represent scal policy except: a. a reduction in the money supply by the Federal ReserVe b. a reduction in individual tax rates c. an increase in corporate income tax rates d. an increase in government spending 6)

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