115) An increase in exports will have what effect on aggregate demand?

A) It will decrease.
B) It will increase.
C) It may increase or decrease depending on the marginal propensity to import.
D) It will have no effect on aggregate demand.

116)

116.1) Refer to the above graph to answer this question. Which of the following
movements is associated with an increase in Potential GDP?

A) From PP2 to PP1.

B) From A to B.
C) From A to C.
D) From C to D.

116.2) Refer to the above graph to answer this question. Which of the following
movements is associated with a decrease in Potential GDP?

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 A) From PP1 to PP2.
B) From D to B.
C) From A to B.
D) From C to D.

116.3) Refer to the above graph to answer this question. Which of the following
movements would likely increase Potential GDP in the future?

A) From PP2 to PP1.

B) From A to B.
C) From B to A.
D) From C to D.

117)

Price Level Aggregate Quantity Demanded Aggregate Quantity Supplied

170 2500 2000
180 2400 2040
190 2300 2100
200 2200 2200
210 2100 2360
220 2000 2560
230 1900 2800

117.1) Refer to the information above to answer this question. What is the equilibrium
level of prices?

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 A) 200.
B) 190.
C) 180.
D) 210.
E) 220.

117.2) Refer to the information above to answer this question. Which of the following
would be true if the price level was 230?

A) There would be surplus of 900.

B) There would be a shortage of 900.
C) There would be a surplus of 1900.
D) There would be a shortage pf 2800.

117.3) Refer to the information above to answer this question. What would be the
equilibrium price if aggregate demand increased by 260?

A) 170
B) 180
C) 190
D) 200
E) 210

117.4) Refer to the information above to answer this question. What would be the
equilibrium quantity if aggregate demand increased by 260?

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 A) 2200
B) 2360
C) 2560
D) 2800
E) 2500

117.5) Refer to the information above to answer this question. What would be the
equilibrium price if aggregate supply increased by 500?

A) 170
B) 180
C) 190
D) 200
E) 210

117.6) Refer to the information above to answer this question. What would be the
equilibrium quantity if aggregate supply increased by 500?

A) 2200
B) 2360
C) 2560
D) 2800
E) 2500

117.7) Refer to the information above to answer this question. Which of the following
would be true if the price level was 190?

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 A) There would be a surplus of goods and services of 200.
B) There would be a shortage of goods and services of 200.
C) Prices would fall.
D) Equilibrium exists.
E) Aggregate supply will rise.

118)

118.1) Refer to the above graph to answer this question. What are the implications if the
price level is currently P1?

A) There is a surplus of goods and services and there is a recessionary gap.

B) There is a shortage of goods and services and there is a recessionary gap.
C) There is a surplus of goods and services and there is an inflationary gap.
D) There is a shortage of goods and services and there is an inflationary gap.

118.2) Refer to the above graph to answer this question. What will happen in the long
run if the price level is currently P1?

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