A. Given a normal market demand curve for V8 Fusion Juice, if the price of V8 Fusion Juice is increased from $2.97 to $3.72, then (3 points)

Question 10 options:

1)

there is an increase in demand for V8 Fusion Juice

2)

there is a decrease in demand for V8 Fusion Juice.

3)

there is a decrease in the quantity demanded of V8 Fusion Juice.

4)

there is an increase in the quantity demanded of V8 Fusion Juice.

5)

the answer cannot be determined from information given.

B. Economists disagree on how to fix a problem in an economy for all of the following reasonsexceptdifferent: (3 points)

Question 13 options:

1)

time periods.

2)

assumptions.

3)

doubts.

4)

theories.

5)

values.

C. Letting wages fall due to labor competition so that employers can hire cheaper labor is a policy supported by (3 points)

Question 14 options:

1)

classical economists.

2)

monetarists.

3)

Keynesians.

4)

rational expectationists.

5)

supply side economists.

D. How will a decrease in personal income taxes and an increase in government spending affect consumer spending and employment?

Consumption / Employment (3 points)

Question 15 options:

1)

Decrease / Increase

2)

Decrease / Decrease

3)

Increase / No Change

4)

Increase / Decrease

5)

Increase / Increase

E. If, as part of supply side policy, Congress votes to decrease business taxes how will output, price level, and real interest rates be impacted?

Output / Price Level / Interest Rates (3 points)

Question 17 options:

1)

Increase / Increase / Increase

2)

Increase / Decrease / Increase

3)

Increase / Decrease / Decrease

4)

Decrease / Increase / Increase

5)

Decrease / Decrease / Decrease