51.Which of the following shifts long-run aggregate supply right?

	a.	an increase in either technology or the human capital stock.
	b.	an increase in human capital but not technology.
	c.	an increase in technology, but not the human capital stock.
	d.	neither an increase in technology nor the human capital stock.

52.Tax cuts shift aggregate demand

	a.	right as do increases in government spending.
	b.	right while increases in government spending shift aggregate demand left.
	c.	left as do increases in government spending.
	d.	left while increases in government spending shift aggregate demand right.

53.The classical dichotomy and monetary neutrality are represented graphically by

	a.	an upward-sloping long-run aggregate-supply curve.
	b.	a vertical long-run aggregate-supply curve.
	c.	an upward-sloping short-run aggregate-curve.
	d.	a downward-sloping aggregate-demand curve.

54.Which of the following shifts both short-run and long-run aggregate supply left?

	a.	a decrease in the actual price level
	b.	a decrease in the expected price level
	c.	a decrease in the capital stock
	d.	a decrease in the money supply

55.Which of the following, other things the same, would make the price level increase and real GDP decrease?

	a.	long-run aggregate supply shifts left.
	b.	long-run aggregate supply shifts right.
	c.	aggregate demand shifts right.
	d.	aggregate demand shifts left.

56.In which case can we be sure real GDP rises in the short run?

	a.	foreign economies expand and government purchases rise.
	b.	foreign economies expand and government purchases fall.
	c.	foreign economies contract and government purchases fall.
	d.	foreign economies contract and government purchases rise.

57.If aggregate demand shifts right then in the short run

a.

firms will increase production. In the long run increased price expectations shift the short-run aggregate supply curve to the right.

b.

firms will increase production. In the long run increased price expectations shift the short-run aggregate supply curve to the left.

c.

firms will decrease production. In the long run increased price expectations shift the short-run aggregate supply curve to the right.

d.

firms will decrease production. In the long run increased price expectations shift the short-run aggregate supply curve to the left.

58.The equation: quantity of output supplied = natural rate of output + a(actual price level - expected price level), where a is a positive number, represents

	a.	an upward-sloping short-run aggregate supply curve
	b.	a vertical short-run aggregate supply curve
	c.	a downward-sloping aggregate demand curve
	d.	None of the above is correct.

59.The aggregate demand and aggregate supply model implies monetary neutrality

	a.	only in the short run.
	b.	only in the long run.
	c.	in both the short run and the long run.
	d.	in neither the short run nor long run.

60.Other things the same, which of the following is correct?

	a.	A decrease in the price level causes the dollar to appreciate. Aggregate demand shifts right.
	b.	A decrease in the price level causes the dollar to depreciate. Aggregate demand shifts right.
	c.	If speculators lose confidence in the American economy, the dollar appreciates. Aggregate demand shifts right.
	d.	If speculators lose confidence in the American economy, the dollar depreciates. Aggregate demand shifts right.