A. Which statement below is true of BOTH aggregate supply and aggregate demand?

1.They are both upward sloping curves.

2.Price level and GDP are on the two axes of the graphs.

3.They both show the amount that the economy can produce at different price levels.

4.They both show the amount of purchasing done by consumers, businesses, and the government.

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B.Which of the following is true about a market at equilibrium price?

1.At the prevailing price, there is no market basis for the price to change.

2.There tend to be shortages because the price is so low.

3.Demand is low because the price is so high.

4. The market does not clear.

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C. Select the statement that is true of long-run aggregate supply curves.

1.Changes in price level affect output.

2.There is a variable quantity of real gross domestic product (RGDP).

3.There is no relationship between price level and real gross domestic product (RGDP).

4.There is a positive relationship between price level and real gross domestic product (RGDP).

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D. According tothe expenditure approach and the information shown here, which of the following is the calculated GDP? Individual purchases: $150 billion Government purchases: $200 billion Business investments: $300 billion Imports: $150 billion Exports: $100 billion

1. $850 billion

2. $900 billion

3. $750 billion

4. $600 billion

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E. When the government withdraws a certain amount of money from the economy, GDP decreases by more than that amount.

This is because of__________.

1.the Phillips curve

2.high rates of inflation

3. taxation

4.the multiplier effect