Which would most likely shift the aggregate supply curve? A change in the prices of _____.

1. domestic products
2. foreign products
3. financial assets
4. resources

A decrease in aggregate demand in the short run will reduce _____.

1. both real output and the price level
2. the price level and increase the real domestic output
3. the real domestic output and have no effect on the price level
4. the price level and have no effect on real domestic output

The economy's long-run AS curve assumes that wages and other resource prices _____.

1. eventually rise and fall to match upward or downward changes in the price level
2. are flexible upward but inflexible downward
3. rise and fall more rapidly than the price level
4. are relatively inflexible both upward and downward

A decrease in government spending will cause a(n) _____.

1. increase in the quantity of real output demanded
2. decrease in the quantity of real output demanded
3. decrease in aggregate demand
4. increase in aggregate demand

If the national incomes of our trading partners increase, then our aggregate demand _____.

1. decreases because consumption decreases
2. increases because consumption increases
3. decreases because net exports decrease
4. increases because net exports increase