If the stock market crashes, then
a. aggregate demand decreases, which the Fed could offset by purchasing bonds.
b. aggregate demand decreases, which the Fed could offset by selling bonds.
c. aggregate demand increases, which the Fed could offset by selling bonds.
d. aggregate demand increases, which the Fed could offset by purchasing the money supply.
a
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
If the full-employment level of Macroland's aggregate economy is $1,600 billion and its economy is currently in an equilibrium at $2,100 billion, then Macroland
a. has a recessionary gap b. needs an expansion in aggregate expenditures c. needs a reduction in aggregate supply d. has an inflationary gap e. needs an aggregate demand expansion
Suppose the Chinese yuan increases in its value relative to the U.S. dollar. In the U.S. economy,
A. the price level will fall and real GDP will increase if the increase in aggregate supply is greater than the decrease in aggregate demand. B. the price level will fall and real GDP will decrease if the decrease in aggregate demand is less than the increase in aggregate supply. C. the price level will increase and real GDP will fall if the increase in aggregate demand is less than the decrease in aggregate supply. D. the price level will increase and real GDP will fall if the decrease in aggregate demand is more than the increase in aggregate supply.
An example of an effective price ceiling would be the government setting the price of wheat at ________ per bushel when the market price is at $4.25 per bushel.
A. $3.75 B. $4.25 C. $7.75 D. $12.00