11. An increase in wealth would shift the: A) aggregate demand curve rightward.

11. An increase in wealth would shift the:
A) aggregate demand curve rightward.
B) aggregate demand curve leftward.
C) aggregate supply curve rightward.
D)aggregate supply curve leftward.
12. Which of the following is not cited as a reason for a firm to pursue a group pricing strategy?
A) To attract and lock in additional customers.
B) To minimize its total costs of production.
C) To create network externalities.
D) To increase its total profit
13. . Jim a U.S. citizen works only in Croatia. The value added to production from his employment is:
A) included only in U.S. GDP.
B) included in only Croatian GNP.
C) included only in U.S. GNP.
D) not included in either U.S. GDP or U.S. GNP
14. . Exports are:
A) negatively related to the level of foreign income and negatively related to the exchange rate.
B) positively related to the level of foreign income and positively related to the exchange rate.
C) positively related to the level of foreign income and negatively related to the exchange rate.
D) negatively related to the level of foreign income and positively related to the exchange rate.
15. The labor force is 100 million and the unemployment rate is 5 percent. One million people quit looking for a job. What is it called when an individual leaves the labor force and in this case what is the new unemployment rate?
A) Discouraged worker 4.04 percent.
B) Discouraged worker 3 percent.
C) Discouraged worker 5.05 percent.
D) Encouraged worker 5 percent.
16. Under a fixed exchange rate system the central bank of a country experiencing a balance of payments surplus will:
A) increase the demand for dollars to prevent a currency appreciation.
B) increase the supply of dollars to prevent currency depreciation.
C) increase the supply of dollars to prevent a currency appreciation.
D) increase the demand for dollars to prevent currency depreciation
17. An increase in the price level will shift the aggregate demand curve:
A) rightward.
B) leftward.
C) both.
D) none of the above.
18. In the foreign exchange market foreign residents wishing to purchase U.S. exports or U.S. real and financial assets must:
A) demand U.S. dollars by supplying U.S. dollars.
B) demand U.S. dollars by supplying their foreign currency.
C) supply U.S. dollars by demanding their foreign currency.
D) none of the above
19. Net exports are:
A) negatively related to domestic income positively related to income in the rest of the world and positively related to currency appreciation.
B) positively related to domestic income positively related to income in the rest of the world and positively related to currency depreciation.
C) positively related to domestic income positively related to income in the rest of the world and positively related to currency appreciation.
D) negatively related to domestic income positively related to income in the rest of the world and positively related to currency depreciation.
20. Higher prices and price increases combined with lower real output and income resulting from a major increase in input prices in the economy is called:
A) stagflation.
B) deflation.
C) inflation.
D) none of the above.
21. If there is an autonomous decrease in spending (a leftward shift in the aggregate demand curve) and the Fed wishes to hold real income constant then the Fed would:
A) decrease the money supply yielding a leftward shift in the aggregate demand curve.
B) increase the money supply yielding a rightward shift in the aggregate demand curve.
C) hold the money supply constant.
D) none of the above.