1/ An increase in government expenditure would shift the: G

1/ An increase in government expenditure would shift the: Group of… 1/ An increase in government expenditure would shift the: Group of answer choices a/ aggregate demand curve rightward. b/ aggregate demand curve leftward. c/ aggregate supply curve rightward. d/ aggregate supply curve leftward.  2/ If the economy is operating way below capacity, an increase in aggregate demand causes a big change in the ________ and small change in ________. Group of answer choices a/ aggregate demand; aggregate supply b/ aggregate supply; aggregate demand c/ output; price level d/ price level; output  3/ If aggregate demand decreases while aggregate supply is stable, income will ________ and the unemployment rate will ________. Group of answer choices a/ increase; increase b/ increase; decrease c/ decrease; increase d/ decrease; decrease  4/  Employment tends to fall when Group of answer choices a/ aggregate output falls. b/ unemployment rises. c/ aggregate output rises. d/ labor productivity falls.  5/Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been chosen as the base year. In 2012, the basket’s cost was $80.00; in 2013, the basket’s cost was $84; and in 2014, the basket’s cost was $87.60. The value of the CPI was Group of answer choices a/ 100 in 2012 b/ 105 in 2013 c/ 109.5 in 2014 d/ All of the above are correct.  6/ For any given year, the CPI is the price of the basket of goods and services in the Group of answer choices a/ given year divided by the price of the basket in the previous year, then multiplied by 100. b/ given year divided by the price of the basket in the base year, then multiplied by 100. c/ base year divided by the price of the basket in the given year, then multiplied by 100. d/ previous year divided by the price of the basket in the given year, then multiplied by 100.  7/ Between October 2014 and October 2015, the CPI in Canada rose from 120 to 124 and the CPI in Mexico rose from 210 to 229.1. What were the inflation rates for Canada and Mexico over this one-year period? Group of answer choices a / 3.3 percent for Canada and 8.3 percent for Mexico b/  3.2 percent for Canada and 9.1 percent for Mexico c/ 3.3 percent for Canada and 9.1 percent for Mexico d/ 3.2 percent for Canada and 8.3 percent for Mexico  9 /  If people decide to hold less currency relative to deposits, the money supply Group of answer choices a/ falls. The Fed could lessen the impact of this by buying Treasury bonds. b/ falls. The Fed could lessen the impact of this by selling Treasury bonds. c/ rises. The Fed could lessen the impact of this by buying Treasury bonds. d/ rises. The Fed could lessen the impact of this by selling Treasury bonds.  10/  Which of the following is included in both M1 and M2? Group of answer choices a/ savings deposits b/ small time deposits c/ demand deposits d/ money market mutual funds         Business Economics ECO 210

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