1.GDP is an indicator of a nation's production of goods and services in a given year. Which of the following would cause an increase in a nation's GDP?

a. Foreign oil is purchased

b. Sales of used automobiles increase dramatically

c. A carpenter builds a dining room table for his daughter's apartment

d. Fees are earned by a broker for the purchase of financial assets for her clients

e. A mechanic restores his own vintage automobile

2.The change in aggregate demand resulting from an increase in household disposable income would affect money demand and nominal interest rates in which of the following ways?

a. No change in money demand and increase in nominal interest rates

b. Increase in money demand and increase in nominal interest rates

c. Increase in money demand and decrease in nominal interest rates

d. Decrease in money demand and no change in nominal interest rates

e. Decrease in money demand and indeterminate in nominal interest rates

3.Assume the economy has been operating at full employment levels of output and price level. A significant depreciation of the U.S. dollar vs. an index of foreign currencies would affect aggregate demand and equilibrium output in which of the following ways?

a. Aggregate demand decreases and equilibrium output decreases

b. Aggregate demand decreases and equilibrium output is determinate

c. Aggregate demand increases and equilibrium output increases

d. Aggregate demand increases and no change in equilibrium output

e. No change in aggregate demand and increase in equilibrium output