4) If personal income taxes are increased, we can expect that

the short-run Phillips curve will shift left.

the short-run Phillips curve will shift right.

there will be a movement to the right along the short-run Phillips curve.

there will be a movement to the left along the short-run Phillips curve.

the long-run Phillips curve will shift right.

5) How will an expansionary monetary policy most likely change aggregate demand, output, and price level?

Aggregate Demand / Output / Price Level

Increase / Increase / Decrease

Increase / Increase / Increase

Decrease / Decrease / Decrease

Decrease / Increase / Decrease

Decrease / Increase / Increase

6) How would an increase in capital investment in the United States by Europeans impact the supply of the euro and the dollar price of the euro?

Supply of Euros / Dollar Price of Euro

Increase / Increase

Increase / Decrease

Increase / No Change

Decrease / Increase

Decrease / Decrease

7) If the workforce is paid more frequently, then

real output will decrease.

the money supply will increase.

price level will decrease.

velocity of money will increase.

nominal output will decrease.

8)

If the money supply increases and nominal GDP remains the same, then

price level increased.

price level decreased.

velocity increased.

velocity decreased.

RGDP increased.

9)

What will happen in an economy where the demand for loanable funds is greater than the supply?

investment spending will increase.

interest rates will increase.

real GDP will increase.

price level will increase.

consumer spending will increase.