Determine which statement below is true of ONLY contractionary policy.

• Lowering interest rates are an example of this
• This includes monetary and fiscal policy
• This can help reduce unsustainable levels of production
• Too much of this can lead only to inflation

Select the statement below that is FALSE regarding labor force participation by gender.

• GDP indirectly accounts for labor force participation.
• Labor force participation rates are not a good indicator of a country's economic health.
• The employment of women in living wage occupations raises the standard of living for families.
• The employment of women in living wage occupations leads to lower birth rates.

Select the FALSE statement below regarding international environmental regulations.

• At a macro level, externalities can lead to global changes.
• Externalities accrue to the firm that produces the good in question.
• The Copenhagen Consensus is an example of an organization that outlines costs and benefits of different ways to respond to climate change.
• Firms over-produce products that impose costs on society.

Which of the following describes one of the unexpected benefits of China's economic policies?

• The standard of living in the U.S. increased.
• The GDP of the U.S. increased, and the GDP of China decreased.
• The Chinese central bank printed extra currency to exchange with the U.S.
• U.S. exports to China increased.

Which statement below describes the effect of expansionary policy on the economy?

• AD shifts to the left.
• It decreases consumer willingness to purchase.
• If AD increases past full employment, prices will rise and return us to equilibrium.
• It decreases the money supply.