choose the correct answer only :

1.The saws, hammers, and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called

a.human capital.

b.capital.

c.natural resources.

d.technological knowledge.

2. The time between when the central bank changes interest rates and when private sector responds to the new interest rates is an example of an: a. impact lag of monetary policy.

b.information lag of monetary policy.

c.decision lag of fiscal policy.

d.uncertainty lag of fiscal policy.

3. Which of the following is not included in aggregate demand?

a.purchases by foreigners of consumer goods produced in the United States

b.purchases of services such as visits to the doctor

c.purchases of capital goods such as equipment in a factory

d.purchases of stock and bonds

4. Automatic stabilizers

a.increase the problems that lags cause in using fiscal policy as a stabilization tool.

b.are changes in taxes or government spending that increase aggregate demand without requiring policy makers to act when the economy goes into recession.

c.are changes in taxes or government spending that policy makers quickly agree to when the economy goes into recession.

d.are changes in taxes or government spending that increase aggregate supply without requiring policy makers to act when the economy goes into recession.

5. Other things the same, if the long-run aggregate supply curve shifts right, prices a. and output both increase.

b.and output both decrease.

c.increase and output decreases.

d.decrease and output increases.