My teacher can't teach economics… help me!?

p>1. If planned aggregate demand exceeds potential aggregate output:
a. There is a deflationary gap
b. There is a inflationary gap
c. The economy will have full employment and stable prices
d. Unemployment will rise

2. If inventories are rising unexpectedly, this indicates:
a. Unintended inventory investment that will cause GDP to fall
b. Unintended inventory disinvestment that will cause GDP to rise
c. That GDP isn’t adequate to generate full employment
d. The beginning of an inflationary spiral

3. If the economy were encountering a severe recession, proper monetary & fiscal policies would call for:
a. Selling government securities, raising the reserve ratio, lowering the discount rate, and budgetary surplus
b. Buying government securities, reducing the reserve ratio, lowering the discount rate, and budgetary deficit
c. Buying government securities, raising the reserve ratio, raising the discount rate, and budgetary surplus
d. Buying government securities, reducing the reserve ratio, raising the discount rate, and budgetary deficit

4. If expansionary discretionary fiscal policies are supported by expansionary discretionary monetary policies, monetarists predict that:
a. The long-run effect will be on prices, but not aggregate output
b. The long-run effect will be on aggregate output, but not prices.
c. Employment will be higher in the long run than without such policies
d. Disinflation will take place

5. In the monetarist conception of the AD-AS model:
a. Changes in AD and changes in the price level and inversely related
b. An increase in AD can reduce inflation substantially without causing much unemployment
c. An increase in AD can expand real output and employment only by causing inflation
d. An increase in AD can expand real output and employment without causing inflation

6. According to Keynesians, an easy money policy might be frustrated, wholly or in part by:
a. Treasury purchase of gold bullion
b. Treasury deficit
c. The desire of households and businesses to hold larger money balances
d. An increase in V

7. If government uses its policies to maintain full employment under conditions of cost-push inflation:
a. A deflationary spiral is likely to occur
b. An inflationary spiral is likely to occur
c. Stagflation is likely to occur
d. The Phillips Curve is likely to shift inward

8. Mainstream macroeconomics would suggest that fiscal policy:
a. Affects GDP and the price level through changes in aggregate supply
b. Changes aggregate demand and GDP through the multiplier process.
c. Has no effect unless the fiscal policy is accompanied by changes in the money supply
d. Is relatively ineffective because the outcomes are anticipated and offset

9. In recent years, calls for monetary rules by the Federal Reserve have been replaced with calls for:
a. A reduction in coordination failures
b. Using an equation of exchange
c. Price level surprises
d. Inflation targeting

10. Mainstream economists think that:
a. Market participants change their actions in response to anticipated price-level changes such that no change in real output occurs
b. The economy self-corrects when unanticipated events divert it from its full-employment level of real output
c. The downward inflexibility of wages and prices may leave the economy stuck in a costly recession for long periods
d. Significant changes in technology and resources availability cause instability

More to come…