1. The aggregate supply curve 

       relates real output to the price level.

       relates nominal output to the price level.

       relates real output to the level of consumer spending.

       is the sum of all market supply curves.

       is not related to real output.

2. Who is NOT a loser in inflation? 

       people on fixed incomes

       people who hold real assets

       the government

       both people who hold real assets and the government

       both people on fixed incomes and people who hold real assets

3. A country is in a recession if 

       nominal output declines for two successive quarters.

       real output declines for two successive quarters.

       unemployment rises in two successive quarters.

       the price level falls in two successive quarters.

       the Dow Jones Index declines by more than 10 percent.

4. Which of the following is a result of slow economic growth? 

       Increasing tax revenues

       increasing levels of pollution

       higher unemployment rates

       political tranquility

5. The labor force is composed of 

       everyone over 16 years of age.

       only those who are currently working.

       those who are working and those who are seeking work.

       all those between 16 and 65.

       those who are working and those who have stopped looking for work.

6. If taxes increase and the AS curve is upward sloping, then 

       output falls and the price level falls.

       output increases and the price level increases.

       output falls and the price level increases.

       output increases and the price level falls.

       output may increase or decrease but the price level will increase.

7. An increase in the money supply 

       will shift aggregate demand to the left.

       will shift aggregate demand to the right.

       will shift aggregate supply to the right.

       will shift aggregate supply to the left.

       will have no effect on either aggregate supply or aggregate demand.

8. The curve that shows quantities of total real output that will be offered for sale at various price levels is called the 

       aggregate demand curve.

       real gross domestic investment curve.

       aggregate supply curve.

       yield curve.

       aggregate individual demand curve.

9. The value of net exports is a positive number in the national income accounts when 

       capital consumption exceeds net investment.

       exports exceed imports.

       imports exceed exports.

       national income exceeds personal income.

       net investment exceeds capital consumption.

10. The transfer of funds from savers to business investors takes place in the

       product market.

       goods market.

       business market.

       credit market.