A prolonged recession in Europe should decrease the

Question 6 options:

	supply of U.S. dollars.
	demand for U.S. dollars.
	supply of U.S. goods and services.
	demand by Americans for euros.

A tariff is

Question 9 options:

	a tax on imports.
	a tax on exports.
	a payment by the government to an exporter.
	a legal limit on the amount of a good that may be imported.

If AS increases at a faster rate than AD, the result will be

Question 11 options:

	demand-side inflation.
	supply-side inflation.
	falling prices.
	stable prices.

The main idea behind supply-side tax cuts is that

Question 15 options:

	tax cuts increase spending, which increases aggregate supply.
	some tax cuts can increase aggregate supply.
	people like lower taxes and will spend more if they get them.
	it is easier to shift aggregate supply than aggregate demand.