Econ - 1(TCO 5 An increase in expected future income...

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1. (TCO 5) An increase in expected future income will (Points : 4) increase aggregate demand and aggregate supply. decrease aggregate demand and aggregate supply. increase aggregate supply. ------- increase aggregate demand. 2. (TCO 5) The short-run aggregate supply curve (Points : 4) becomes flatter at output levels above the full-employment output. -------- becomes steep at output levels above the full-employment output. is upward-sloping with a constant slope. is horizontal. 3. (TCO 5) A fall in labor costs will cause aggregate (Points : 4) supply to increase. demand to increase. supply to decrease. -------demand to decrease. 4. (TCO 5) With cost-push inflation in the short run, there will be (Points : 4) an increase in real GDP. ------ a leftward shift in the aggregate demand curve. a decrease in real GDP. a decrease in unemployment.
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5. (TCO 6) If a family's MPC is .7, it means that the family is (Points : 4) operating at the break-even point. --------spending seven-tenths of any increment to its income. necessarily dissaving. spending 70 percent of its disposable income. 6. (TCO 7) Which definition(s) of the money supply include(s) only items which are directly and immediately usable as a medium of exchange? (Points : 4) -------- M1 M2 Neither M1 nor M2
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