Question 1 1 pts When resources are fully employed, aggregate supply reaches its current limit. O True O False Question 2 1 pts Anything that reduces resource availability or increases the prices of resources would shift the aggregage supply curve inward to the left. O True O False Question 3 1 pts An increase in real output of goods and services is the only possible explanation for an increase in nominal GDP. O True O False Question 4 1 pts The government can increase aggregate demand to combat unemployment and decrease aggregate demand to combat inflation. O True O FalseQuestion 9 1 pts Aggregate demand (AD) represents the total amount of goods and services demanded for consumption (C), investment (1), government spending (G), and by foreigners (F). O True O False Question 10 1 pts When measuring GDP, only final goods and services are counted in order to avoid double counting. O True O False Question 11 1 pts Last month 5,000 people decided to quit their jobs in order to seek better employment opportunities. These people are D frictionally unemployed discouraged workers O structurally unemployed O underemployed workers O cyclically unemployed Question 12 1 pts Which of the following statements would come from someone classified as unemployed? O I haven't had a job in a year, and I stopped looking for a job nine months ago. " I'm a full-time student who doesn't have time to work. O I'm not working, but I've had three interviews this week and I'm trying to find a job. O I'm not working because I'm going to Jamaica with my friend. O I can't stand my current job as a telemarketer. I used to be an engineer.Question 13 1 pts When the economy is in equilibrium, there will be no unemployment. O True O False Question 14 1 pts Once the full-employment level of aggregate supply has been reached, further expansion of the aggregate demand curve will cause inflation to occur in the economy. O True O False Question 15 1 pts If the federal government wants or needs to borrow money, the Dept. of Treasury issues government bonds that promise to pay the bond purchasers back with interest. O True O False Question 16 1 pts Although the government incurred sizeable deficits for most of the past 25 years, is has managed to pay for those deficitis by borrowing. True O FalseQuestion 1? The federal government's primary source of revenue is from 0 property tax 0 sales tax 0 income tax 0 rational park entrance fees Question 18 The largest percentage of the national debt is held by 0 commercial banks (3 indiuiduaiU.S_citizens 0 federal gowrnment agencies and trust funds 0 foreigners Question 19 1 p15 According to "Nobodyr Understands Debt" by Paul Krugman. the US economy.r suffered after World War II due to the high level of national debt. 0 True 0 False Question 20 1 DIS According to Paul Krugman in "NDlJDClY Understands Debt". the most troubling aspect of the current US national debt letrel is: O the distress the debt causes ordinary citizens. O the taxes required to make internist payments on the debL O the current size of the debt in relation to US Gross Domestic Product {GDP}. (3 the amount oi the debt that is new owed to foreigners. and Specially to the Chinese. Question 21 1 pts As reported in "Freakonomics", a preschool in Israel was able to significantly reduce the frequency of of parents picking up their kids late by simply charging a predetermined fee for late pick-ups. O True O False Question 22 1 pts According to Levitt and Dubner, "Economics is, at root, the study of." O incentives O investments O money O supply and demand Question 23 1 pts As highlighted in "Freakonomics", there are more homicides per capita now than in any of the past five centuries. O True O False Question 24 1 pts Steven D. Levitt was able to effectively identify many Chicago school teachers who were cheating on standardized tests by focusing on: O standardized test scores from two and three years earlier O the number of perfect scores per teacher O suspicious eraser marks on exam forms O common answer sequences submitted by studentsQuestion 5 1 pts As the price level rises, people feel wealthier and aggregate demand increases. O True O False Question 6 1 pts If the government increases its military spending. the aggregate demand curve shifts to the right. True O False Question 7 1 pts An increase in the price level is called O stagflation O deflation O inflation O nominal pricing Question 8 1 pts The total value of all final goods and services produced in the economy during a given year, measured in current market prices, is O economic growth net national income O aggregate demand O gross national product gross domestic product