1.The long-long run Phillips curve shows

a. cyclical unemployment in the economy.

b. structural unemployment in the economy.

c. frictional and structural unemployment in the economy.

d. cyclical and frictional unemployment in the economy.

e. cyclical and structural unemployment in the economy.

2.A decrease in economic growth would be graphically represented by

a. a decrease in the PPC and AD.

b. a decrease in the PPC and LRAS.

c. a decrease in the AD and SRAS.

d. a decrease in the LRAS and AD.

e. a decrease in the LRAS and SRAS.

3.Suppose the United States and Sweden sign a free trade agreement. If real interest rates increase in Sweden but not in the United States, which of the following will be true of Swedish capital flow, the value of the krona, and exports?

Capital Flow /Value of Krona / Exports

a. Inflow / Appreciate/ Increase

b. Inflow / Appreciate / Decrease

c. Inflow / Depreciate / Increase

d. Outflow / Appreciate / Decrease

e. Outflow / Depreciate / Increase