An increase in the marginal propensity to import causes the aggregate expenditure curve to...

a. Get steeper.

b.Shift down.

c.Shift up.

d.Get flatter.

Michelle quit her job to return to school. As a result, the unemployment rate...

a. Increases.

b.There is insufficient information.

c.Decreases.

d.Is unaffected.

The AS curve is also known as the _____ function.

a.Monetary policy.

b.Short-run production.

c.Long-run production.

d.Inflation adjustment.

The spending multiplier equals...

a.1 / (1 - the slope of the aggregate expenditure curve).

b.1 - the slope of the aggregate expenditure curve.

c.The slope of the aggregate expenditure curve.

d.Aggregate expenditure / autonomous expenditure.