Which of the following is a microeconomic concern?

Question 1 options:

a)	The rate of unemployment in the country

b)	How an individual consumer responds an economic recession.

c)	The inflation rate the US faces.

d)	How the Federal reserve conducts monetary policy during a recession.

A rightward shift in the aggregate supply curve can be associated with a reduction in resource prices.

Question 2 options:

	True
	False

The basic economic problem is

Question 3 options:

a)

poverty.

b)

scarcity.

c)	inflation.

d)	unemployment.

The largest component of the expenditure approach to calculating GDP is

Question 4 options:

a)	interest income to capital owners.

b)	wages and salaries.

c)	consumption spending.

d)	profits earned by entrepreneurs.

Question 5

In the Income-Expenditure model, the primary determinant of consumption is

Question 5 options:

a)	expectations of inflation.

b)

taxes.

c)

wealth.

d)	disposable income.

Question 6

Figure 8-5

452 45 P2 - - - U.S. Price Level Y'2 U.S. National Income (Dollars)Trend Real GDP Year 1 Year 2 Year 3 Year 4 Year 5 TimeYear Price Index 2010 100 2017 120 2018 125 2019 130Year Price Index 2010 100 2017 120 2018 125 2019 130\f452 45 P2 - - - U.S. Price Level Y'2 U.S. National Income (Dollars)Trend Real GDP Year 1 Year 2 Year 3 Year 4 Year 5 TimeYear Price Index 2010 100 2017 120 2018 125 2019 130Year Price Index 2010 100 2017 120 2018 125 2019 130