1.When each firm is producing at capacity and there is full employment, this shows:

a. all of the options

b. the long run AS curve

c. an inflationary gap

d. a deflationary gap

2.Which of the following statements about aggregate demand is correct?

a. In the short run, shifts in aggregate demand affect the overall price level but do not affect output

b. In the long run, shifts in aggregate demand affect the overall price level but do not affect output

c. In the long run, shifts in aggregate demand cause fluctuations in output

d. In the short run, shifts in aggregate demand do not affect the overall price level and output

3.If resources become more productive:

a. neither the short-run aggregate curve nor the long-run supply curve shifts

b. the aggregate-demand curve shifts

c. both the short-run and the long-run aggregate-supply curves shift

d. the short-run aggregate-supply curve is not affected but the long-run aggregate curve shifts

4.When factors (other than price level) that affect the quantity of goods and services supplied change:

a. the aggregate-supply curve is not affected

b. the aggregate-supply curve shifts

c. the aggregate-supply curve becomes horizontal

d. the aggregate supply becomes vertical