I need help with these questions.

1. When resource prices are negotiable, the long-run aggregate supply curve is represented by

A. an upward-sloping line

B. a downward-sloping line

C. a vertical line at potential output.

D. a horizontal line at the actual price level

E. a horizontal line at the expected price level.

2.An expansionary gap is closed in the long run by a(n):

A. rightward shift of the short-run aggregate supply curve.

B. leftward shift of the short-run aggregate supply curve.

C. movement to the right along a fixed short-run aggregate supply curve

D. increase in aggregate demand.

E. decrease in aggregate demand.

3.The long run is the period of time during which:

A.real wage is exactly equal to nominal wage.

B.inflation is zero.

C.excess aggregate demand leads to a shortage

D.real wages are constant.

E.all resource prices can be varied.

4.If the actual price level is less than the expected price level reflected in long-term contracts, ___

A.firms will find production more profitable in the short run than they had expected and will decrease the quantity of output supplied

B.firms will find production less profitable in the short run than they had expected and will decrease the quantity of output supplied

C.firms will find production more profitable in the short run than they had expected and will increase the quantity of output supplied

D.resource owners will earn higher returns in the short run than they had expected and will decrease the quantity of resources supplied

E.unemployment will increase in the short run as firms will substitute labor with capital inputs

5.The short run is a period of time during which:

A.there is an expansionary gap that cannot be corrected using the passive approach

B.actual output equals potential output.

C.there is a recessionary gap that cannot be corrected through discretionary policy

D.resource buyers and sellers cannot adjust fully to changes in the price level.

E.resource buyers and sellers can adjust fully to changes in the price level.

6.Which of the following is true in the short run but not in the long run?

A.Actual output is equal to potential output.

B.Actual output can exceed potential output.

C.Structural unemployment can exist

D.Frictional unemployment can exist.

E.Real and nominal GDP can differ.

7.If the price level in the current year is much higher than the expected price level, ___

A.firms will increase production beyond the economy's potential level

B.the unemployment rate will increase

C.firms will decrease production below the economy's potential level

D.the short-run aggregate supply curve will become steeper

E.the unemployment rate will fall to zero

8.The potential output of an economy is:

A.the output level at which inflation is very high.

B.the output level at which nominal GDP is equal to real GDP.

C.less than the full-employment rate of output.

D.the output level at which total unemployment is zero.

E.also referred to as the natural rate of output

9.When the economy is at its potential output level, which of the following is true?

A.The price level is higher than that expected by workers.

B.The nominal wage is equal to the real wage

C.The unemployment rate is about 14 percent.

D.The economy is producing its maximum sustainable output.

E.The actual price level is less than the expected price level.

10.In a particular year, if the price level rises by 4 percent and the nominal wage of workers rises by 6 percent, we can conclude that the real wage has:

A.fallen by 2 percent.

B.fallen by 10 percent.

C.increased by 2 percent.

D.increased by 10 percent

E.remained constant.

11.The aggregate output demanded for a given price level occurs at the point where:

A.an economy reaches the full employment of labor.

B.aggregate expenditure equals real GDP.

C.actual aggregate expenditures exceeds real GDP

D.inventories of goods and services are increasing

E.inventories of goods and services are decreasing.

12.Which of the following is not an example of a government purchase?

A.Salaries of teachers in public schools

B.Chinese toys to be sold in stores

C.Purchase of military aircrafts

D.Construction of an interstate highw

E.Building a public school

13.Net taxes are:

A.taxes plus transfer payments.

B.taxes minus transfer payments

C.an injection into the economic system.

D.consumption after taxes

E.government spending minus taxes

14.An increase in net wealth will:

A.increase consumption and saving at each level of income.

B.increase saving and decrease consumption at each level of income

C.decrease consumption and saving at each level of income

D.increase consumption and decrease saving at each level of income.

E.have no effect on consumption because consumption is a function of income.

15.Which of the following is true of the relationship between disposable income and consumption?

A.Disposable income and consumption are both dependent variables.

B.Disposable income and consumption are both independent variables

C.Disposable income is the dependent variable and consumption is the independent variable

D.Consumption is the dependent variable and disposable income is the independent variable

E.Disposable income and consumption are negatively related to each other.

16.The marginal propensity to consume is:

A.the relationship between a change in consumption and a change in income.

B.the relationship between a change in consumption and a change in saving.

C.the relationship between changes in consumption and changes in net wealth.

D.the ratio of income to consumption at any given level of income.

E.the ratio of total consumption to total saving.