Refer to the above figure. If the economy is at E and the government wants to increase aggregate demand to AD3, but the increase in spending only shifts the aggregate demand curve to AD2, then
A) complete crowding out has occurred.
B) some crowding out has occurred.
C) the increased borrowing caused interest rates to fall.
D) the short-run aggregate supply curve is steeper than the figure indicates.
B)
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
_________ inflation can be explained by an _________ shift in the aggregate _________ curve
a. Demand-pull, rightward, demand b. Cost-push, rightward, supply c. Demand-pull, leftward supply d. Cost-push, leftward, supply
The initial development of paper money began when people used ____ as payment for goods and services
a. credit cards b. commodity money c. goldsmith receipts d. gold bullion e. gold coins
Assume the demand curve for shampoo is downward sloping. If the price of shampoo falls from $1.50 to $1.25 per dozen,
a. the demand for shampoo will fall. b. the demand for shampoo will rise. c. a larger quantity of shampoo will be demanded. d. a smaller quantity of shampoo will be demanded.