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UNIT 5 Macroeconomics SAMPLE QUESTIONS …

advanced placement Economics Macroeconomics : Student Activities National Council on economic Education, New York, the letter of each correct Which of the following monetary and fiscal pol-icy combinations would definitely cause adecrease in aggregate demand in the short run?DiscountGovernmentOpen MarketRateSpendingOperations(A) DecreaseDecreaseBuy bonds(B) DecreaseIncreaseBuy bonds(C) Decrease IncreaseSell bonds(D) Increase DecreaseSell bonds(E) Increase DecreaseBuy bonds2. Which of the following monetary and fiscal pol-icy combinations would definitely cause anincrease in aggregate demand?

Advanced Placement Economics Macroeconomics: Student Activities © National Council on Economic Education, New York, N.Y. …

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