(1A) Typically, if consumer and business confidence is falling then ________ and if consumer and business confidence is rising then ________.

• (a) AD shifts to the right; AD shifts to the left
• (b) AD shifts to the left; AD shifts to the right
• (c) AD does not shift; AD shifts to the right

(1B) What accurately describes the Aggregate Demand-Aggregate Supply (AD-AS) model?

• (a)Real GDP is shown on the vertical axis and the price level is shown on the horizontal axis.
• (b)Price level is shown on the vertical axis and real GDP is shown on the horizontal axis.
• (c) Aggregate demand is shown on the vertical axis and aggregate supply is shown on the horizontal axis.

(1C) The relationship between the price level and the total quantity of output or real GDP firms will produce to sell is known as

(a)market supply.

(b) aggregate supply.

(c)aggregate demand.