1. From 1950 to2009, the average length of expansions in the United States has been

A.

less than 2 years.

B.

between 2 year and 3 years.

C.

between 3 years and 4 years.

D.

longer than 4 years.

2 Most economists see the business cycle

A.

as randomlyoccurring, resulting from unpredictable longrun changes in the macroeconomy.

B.

as a regular pattern of recessions and expansions of the same length and intensity.

C.

occurring as a result of anticipated macroeconomic changes in the marketplace.

D.

as resulting from the response of households and firms to macroeconomic shocks.

4 If oil pricesdecrease,

A.

the longrun aggregate supply curve will shift to the left.

B.

the shortrun aggregate supply curve will shift up.

C.

the longrun aggregate supply curve will shift to the right.

D.

the shortrun aggregate supply curve will shift down.