1. The manuscript for this book was keyed by the author. Had he hired someone to do the keying, GDP would have been higher than it was. What other activities would increase GDP if they were done differently? What activities would decrease GDP if they were done differently?
2. Is it true that net domestic product plus the capital consumption allowance is equal to GDP? Explain your answer.
3. Diagrammatically represent an economy that is in neither short-run nor long-run equilibrium
4. There is a difference between a change in the interest rate that is brought about by a change in the price level and a change in the interest rate that is brought about by a change in some factor other than the price level. The first will change the quantity demanded of Real GDP, and the second will change the AD curve. Do you agree or disagree with this statement? Explain your answer.
5. The amount of Real GDP (real output) that households are willing and able to buy may change if there is a change in either (a) the price level or (b) some non price factor, such as wealth, interest rates, and the like. Do you agree or disagree? Explain your answer
6. Can there be an increase in total spending in the economy without there first being an increase in the money supply?
7. Can total spending be a greater dollar amount than the money supply? Explain your answer
8. Will a direct increase in the price of U.S. goods relative to foreign goods lead to a change in the quantity demanded of Real GDP or to a change in aggregate demand? Will a change in the exchange rate that subsequently increases the price of U.S. goods relative to foreign goods lead to a change in the quantity demanded of Real GDP or to a change in aggregate demand? Explain your answers.
9. A change in the price level affects which of the following?

a. The quantity demanded of Real GDP

b. Aggregate demand

c. Short-run aggregate supply

d. The quantity supplied of Real GDP

10 Identify the details of each of the following explanations for an upward-sloping SRAS curve:

a. Sticky-wage explanation

b. Worker-misperception explanation

11 Beginning with long-run equilibrium, explain what happens to the price level and Real GDP in the short run and in the long run as a result of (a) a decline in AD, (b) a rise in AD, (c) a decline in SRAS, and (d) a rise in SRAS.