1.Which of the following shifts aggregate demand curve rightward?

1. A decrease in wealth.
2. The expecation of a future loss of income
3. A decrease in government purchases.
4. A cut in income taxes.

2.Which of the following changes would NOT shift the short-run aggregate supply curve?

1. an occurance of natural disaster.
2. a fall in the price level.
3. a decrease in the labour cost.
4. a rise in the rental cost.

3.A decrease in consumption expenditure resulting from a decrease in expected future consumer income would be described by

1. an upward movement along the aggregate demand curve.
2. a rightward shift of the aggregate demand curve.
3. a downward movement along the aggregate demand curve.
4. a leftward shift of the aggregate demand curve.

4.The government increases its purchases of goods and services. As a result, in the short-run,

1. real GDP and the price level will rise.

2.real GDP and the price level will decrease.

3.real GDP will increase and the price level will fall.

4.real GDP will decrease and the price level will increase.

5.In the long-run, an increase in the labour force leads to

1. a decrease in the equilibrium price level and real GDP
2. a decrease in the equilibrium price level and an increase in real GDP.

3.an increase in the equilibrium price level and a decrease in real GDP

4.an increase in the equilibrium price level and real GDP

6.The quantity of real GDP supplied at full employment is called

1. short-run equilibrium GDP.
2. real GDP demanded.
3. hypothetical GDP.
4. potential GDP.

7.Aggegate demand decreases when

1. business come to expect higher profits in the future.
2. incomes in foreign countries increases.
3. the central bank lowers interest rates.
4. the government raises taxes.

8.The long run aggregate supply curve shifts to the right given that

1.there is a rise in the quantity of capital.

2.there is afall in the quantity of labour.

3.there is a rise in rental cost.

4.there is a rise in wages.

9.If the prices of inputs changes,

1. the AD curve shifts.
2. the SAS curve shifts.
3. the macroeconomic equilibrium is unaffected.
4. the LAS curve shifts.

10.Which of the following shift the LAS curve rightward?

1. A decrease in the labour force.
2. An increase in the price level.
3. A decrease in the money wages.
4. A increasea in the education level of the labor force.