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Unformatted text preview: Extra Credit Assignment #3 Due no later than Nov. 17, 2010 Name:____________________________________________ Class:_________________________ True/False 1._____ Stagflation is primarily caused by a decrease in aggregate demand that increases the price level and decreases real domestic output. 2._____Ongoing inflation is the result of ongoing shifts of either the aggregate demand or aggregate supply curves. 3._____The financing of the public debt can increase interest rates and reduce private investment spending. 4._____If there is a Federal budget surplus, then government revenues are greater than its expenditures. 5._____ Supply factors that shift the economy's production possibilities curve outward also cause a rightward shift in its long-run aggregate supply curve. Multiple-Choice 6. _____If there is an increase in labor productivity: A. The production possibilities curve would shift outward and the long-run aggregate supply curve would shift rightward B. The production possibilities curve would shift inward and the long-run aggregate supply curve would B....
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