QUESTION 1

The business cycle is the economy's tendency to:

1. sell more at Christmas
2. grow and contract in unbalanced cycles
3. grow more in even numbered years
4. rely on the motorcycle industry

5 points

QUESTION 2

The real balances effect says that when an economy falls so do incomes, but _ don't.

1. savings accounts
2. taxes
3. births
4. interest rates

5 points

QUESTION 3

An income tax reduction would clearly shift _ to the _.

1. aggregate demand, right
2. aggregate demand, left
3. aggregate supply, right
4. aggregate supply, left

QUESTION 4: