Which of the following is an effect of an increase in the price level in an economy?
a. The real value of dollar-denominated assets will fall
b. The aggregate expenditure line will shift upward.
c. The equilibrium real gross domestic product will increase.
d. There will be a downward movement along the aggregate demand curve of the economy.
e. The aggregate demand curve of the economy will shift rightward.
a
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
Refer to Figure 4.3. All else equal, an increase in net exports accompanied by a decrease in expected future profits would cause which of the following shifts?
A) S1 to S2 and D1 to D2 B) S2 to S1 and D1 to D2 C) S1 to S2 and D2 to D1 D) S2 to S1 and D2 to D1
Why are transfer payments included in personal income but not in national income? Are transfer payments included in GDP?
A person who believes the economy is self-regulating also believes that
A) when there is a surplus in the labor market, the wage rate falls, and when there is a shortage in the labor market, the wage rate rises. B) it is better if the economy is in an inflationary gap than a recessionary gap. C) prices are flexible but wages are not. D) the economy is always in long-run equilibrium. E) the real balance effect does not operate in a recessionary gap.