1)The theory of long-run 'self-adjustment' was proposed by the

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1)The theory of long-run 'self-adjustment' was proposed by the ...............

A) Keynesian's

B) Classical's

2.

The Keynesian's and Classical's disagreed on what?

A) the very existence of business cycles.

B) the way the economy worked and how to solve macro economic problems.

C) whether or not recessions and depressions occurred.

3.

The short-run aggregate supply curve is positively slopped because:

A) wages and other costs of production respond immediately to changes in price.

B) profit is slower when prices increase, so output decreases.

C) workers are willing to work for lower wages rather than be laid off.

D) higher prices lead to higher profit and higher output

4.

A decrease in energy prices will:

A) increase short-run aggregate supply.

B) decrease the quantity of aggregate output supplied int the short-run.

C) decrease aggregate demand.

D) increase the quantity of aggregate output demanded.

5.

A natural disaster that destroys part of a country's infrastructure is a type of ............... and therefore shifts the ................ to the ................. .

A) negative demand shock; aggregate demand curve; right

B) negative supply shock; aggregate demand curve; left

C) negative supply shock; short-run aggregate supply curve; left

D) negative demand shock; long-run aggregate supply curve; left