14. In Figure 2 above, expansionary fiscal policy accommodated by the Fed can be pictured as a movement from points

(A) A to D.
(B) A to C.
(C) D to B.
(D) B to D.
(E) A to B.

15. In Figure 3 above, an increase in autonomous exports will cause the ______ dollars to ______ and the exchange rate to ______, ceteris paribus. (A) supply of; shift to S1; rise (B) supply of; shift to S1; fall (C) demand for; shift to D1; fall (D) demand for; shift to D2; fall

16. Keynes argued that monetary policy would be impotent during the Great Depression because a (A) fall in interest rates would stimulate investment. (B) fall in interest rates would not stimulate investment. (C) rise in interest rates should not stimulate investment. (D) rise in interest rates would stimulate inv

17. In Figure 4 above, positive nominal GDP growth accompanied by higher inflationary expectations take us along path (A) A. (B) C. (C) E. (D) G.

18. In Figure 4 above, an adverse supply shock accompanied by a neutral policy take us along path (A) F. (B) G. (C) H. (D) A.

19. Frictional unemployment is reduced by ______ in the number of weeks one is eligible for unemployment compensation, and ______ in the price of gasoline. (A) an increase, an increase (B) an increase, a decrease (C) a decrease, an increase (D) a decrease, a decrease

20. Initially, the economy is at point B on Figure 5 above. According to the Solow growth model, an increase in the output per capital without an increase in capital per worker is represented by ______ and could be the result of ______. (A) the movement B to E; new technology discoveries (B) the movement B to H; improved health and education per worker (C) the movement B to C; an increase in the savings rate (D) the movement B to F; a decrease in the savings rate

21. Refer to Figure 6. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely (A) increase the money supply and decrease the interest rate. (B) increase taxes. (C) increase government spending. (D) increase oil prices. (E) raise interest rates.

22. Refer to Figure 6. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, and no fiscal or monetary policy is pursued, then at point B (A) the unemployment rate is very low. (B) firms are operating at below capacity. (C) the economy is below full employment. (D) income and profits are falling. (E) there is pressure on wages and prices to fall. 

23. Refer to Figure 7. Assume the figure charts possible outcomes for the year 2019. In 2019, the economy is at point A on the left-hand graph, which corresponds to point A on the right-hand graph. The price level in the year 2018 wasFigure 7. The left-hand graph shows a short-run aggregate-supply (SRAS) curve and two aggregate-demand (AD) curves. On the left-hand diagram, Y represents output and on the right-hand diagram, U represents the unemployment rate. (A) 144. (B) 150. (C) 152. (D) 156.

24. France has a higher natural rate of unemployment than the United States. This suggests that (A) France is at a higher point on its long-run Phillips curve and so has higher inflation than the United States. (B) France is at a lower point on its long-run Phillips curve and so has lower inflation than the United States. (C) France's Phillips curve is to the left of that of the United States, possibly because they have higher inflation. (D) France's Phillips curve is to the right of that of the United States, possibly because they have more generous unemployment compensation.

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