1.According to the Classical economist's __________ is the solution to unemployment.

a.higher education

b.welfare

c.better health care

d.hunger

2.________unemployment results from persons being temporarily unemployed between jobs.

a.Frictional

b.Structural

c.Disguised

d.Seasonal

3.According to the Keynesian economists the Great Depression could have been prevented by putting money into the economy.

a. True

b. False

4. When an agricultural economy is changing into an industrial economy it could create

a. a skills gap

b. cyclical unemployment

c. inducedunemployment

d. frictional unemployment

5.When AD increases in the Keynesian range of the AS curve

a.demand for national output will increase

b.price level will not change

c.the economy is producing below potential output

d.all of the above

6.The AS curve has a positive slope because of the

a. wealth effect

b.profit effect

c.foreign sector substitution effect

d.all of the above

7.When AD continues to increase in the Classical range of the AS curve, policy makers will__________

a.use expansionary policies.

b.fear inflation

c.decrease taxes

d.none of the above