Several tough Economics questions: GDP, Aggregate Demand, and graphs...?

[barnett]

Taking an ECN test at home, and the questions are similar, but I can't wrap my head around them. Plus, i'm not feelings very well (allergies and a small headache), so it's hard to focus. I'd appreciate any help. They're all multiple choice, so that should help.

Here they are.

1.) An unplanned increase in inventories results from:
a. an increase in planned investment
b. a decrease in planned investment
c. actual investment that is GREATER than planned investment
d. actual investment that is LESS than planned investment

2.) 5 most important variables that determine the level of consumption are:
a. disposable income, wealth, expected future income, price level, interest rate
b. wealth, savings account balances, checking account balances, stock portfolio balances, bond portfolio balances (my professor never mentioned those, so i doubt it's b)
c. government purchases, interest rates, income, taxes, transfers
d. government purchases, savings account balances, wealth, interest rates, portfolio balances

3.) If inflation in the U.S. is higher than inflation in other countries, what will be the effect on net exports (NE) for the U.S.?
a. NE will rise as US exports increase
b. NE will rise as US imports decrease
c. NE will decrease as US exports decrease
d. NE will decrease as US imports decrease

4.) Aggregate Demand Curve: Car exports were hurt in 2009 as a result of the recession. How would this decrease in exports have affected the aggregate demand curve (ADC)?
a. ADC would have shifted to the right
b. ADC would not have shifted, but there would have been a movement up the ADC
c. ADC would not have shifted, but there would have been a movement down the ADC
d. ADC would have shifted to the left

5.) Last week, six Swedish kronor could purchase one US dollar. This week, it takes eight kronor to purchase one US dollar. This change in the value of the dollar will _______ exports from the US to Sweden and ______ US aggregate demand
a. increase; increase
b. decrease; decrease
c. increase; decrease
d. decrease; increase

6.) If stricter immigration laws are imposed and many foreign workers in the US are forced to go back to their home countries,
a. the long-run aggregate supply curve will shift to the right
b. the long-run aggregate supply curve will shift to the left
c. we will more up along the long-run aggregate supply curve
d. we will move down along the long-run aggregate supply curve

7.) If full-employment GDP is = $4.2 trillion, what does the long-run aggregate supply curve look like?
a. it is a horizontal line at 4.2 trillion of GDP
b. it is a vertical line at a level of GDP below 4.2 trillion
c. it is a vertical line at 4.2 trillion of GDP
d. it is a vertical line at a level of GDP above 4.2 trillion

that's only a few. please answer the ones you can, and any advice or proof would be much appreaciated.

Thanks guys,
-Chaos

[amdt57]

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