UNIT 3 Macroeconomics SAMPLE QUESTIONS MULTIPLE …

unit . 3 Macroeconomics MULTIPLE -CHOICE. SAMPLE QUESTIONS . SAMPLE MULTIPLE -Choice QUESTIONS Circle the letter of each correct answer. 4. A rightward shift in the aggregate demand curve with a horizontal aggregate supply curve will 1. Which of the following best describes aggregate cause employment and the price level to change supply? in which of the following ways? (A) The amount buyers plan to spend on Employment Price Level output (A) Increase Increase (B) A schedule showing the relationship (B) Increase Decrease between inputs and outputs (C) Increase No change (C) A schedule showing the trade-off between (D) Decrease No change inflation and unemployment (E) No change No change (D) A schedule indicating the level of real out- put that will be purchased at each possible 5.

3 Macroeconomics SAMPLE QUESTIONS MULTIPLE-CHOICE UNIT (continued) $ 2 0 0 0 $ 3 0 0 $ 4 0 0 $ 5 0 0 $ 6 0 0 $ 8 0 0 200 400 600 $800 125 75 150 TOTAL INCOME A G G R E G A T E E X P E N D I T U R E (i n b i l l i o n s) C + I + G C + I C 45˚

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