I want to verify a few answers and need to clarify confusion by knowing the rest. Document Preview: 1. Which of the following will cause the aggregate-demand curve to shift to the left?   PRIVATE "...

1.
Which of the following will cause the aggregate-demand curve to shift to the left?
A. a decrease in interest rates
B. an increase in consumer confidence
C. an increase in the cost of labo
D. a decrease in future business expectations
E. an increase in government spending
2.
Which of the following economic variables move in the same direction in general?
A. unemployment rate and personal income
B. unemployment rate and GDP growth
C. GDP growth and government tax revenues
D. unemployment rate and tax revenues
E. unemployment rate and inflation rate
3.
Which of the following statements is true?
A. Money neutrality means nominal changes are i
elevant in the long run; only real changes matter.
B. The classical dichotomy refers to the fact that only real variables are important in the long run.
C. The wealth effect on the part of consumers explains why output is higher when the price level is
lower.
D. A falling price level benefits lenders at the expense of bo
owers.
E. All of the above are true.
4.
What is the name of the price at which one cu
ency exchanges for another cu
ency?
A. foreign exchange rate
B. cu
ency exchange rate
C. net export exchange rate
D. money exchange rate
E. value of the dollar
5.
Short-run aggregate supply is upward-sloping because of
A. misperceptions about the rate of inflation.
B. sticky prices.
C. sticky wages.
D. all of the above.
E. none of the above.
6.
Fiscal policy includes all but which of the following?
A. corporate income tax cuts
B. interest rate cuts
C. income tax increases
D. increase in government spending on homeland security
E. increase in unemployment insurance
7.
If the government wished to increase aggregate demand through fiscal policy, which set of policies would it
pursue?
A. a tax cut combined with spending cuts
B. a tax increase combined with spending cuts
C. spending increases combined with tax cuts
D. any of the above
E. none of the above
8.
The aggregate-supply curve can be shifted to the right by all but which of the following?
A. discovery of new oil reserves
B. new technologies
C. a tax increase
D. an increase in immigration
E. investment tax credit
9.
If the marginal propensity to consume equals 0.8, what is the multiplier?
A. 0.8
B. 1.25
C. 5
D. 8
E. 0.2
10.
If the marginal propensity to consume equals 0.75, a $6,000,000 increase in government purchases will
esult in what increase to total output, assuming no crowding-out effect exists?
A. $4,500,000
B. $6,000,000
C. $8,000,000
D. $24,000,000
E. $1,500,000
11.
Which of the following is an example of an automatic stabilizer?
A. spending on Medicare, a health care program for the elderly
B. spending on research and development
C. unemployment compensation
D. spending on the improvement of public roadways
E. all of the above
12.
Which of the following is an example of "supply-side economics"?
A. an investment tax credit
B. a one-time tax rebate to low-income families
...