Use the following to answer questions 1-7: Use the following diagrams for the U.S, economy to answer the following questions. 4s | AS, | AS, Price level ‘aD Real domestic output Real domestic output a) ®) s Ss Price level "Xap, x a0, ‘AD, 10, Price level Real domestic output Real domestic output ©) 1, Which ofthe above diagrams best portrays the effects of declines in the incomes of U.S. trading partners? Ay A B) B oe Dd) D Which ofthe above diagrams best portrays the effects ofan increase in foreign spending on U.S. products? AA BB oc D) D 3. Which of the above diagrams best portrays the effects of an increase in resource productivity? AYA B)B oc Dd) DWhich of the above diagrams best portrays the effects of an increase in consumer spending? Ay A B) B oc Dd) D Which ofthe above diagrams best portrays the effects of deci AA B) B oc Dd) D sin the prices of imported resources? Which of the above diagrams best portrays an improvement in expected rates of return on investment? AA B) B oc Dd) D Which of the above diagrams best portrays the effects of a decrease in the availability of key natural resources? AYA B) B oc bd) D Page 2Use the following to answer questions 8-16: sz Price level as ABAD. 7 = QO, . QO, 20a; Real domestic output GDP Real domestic output GDP—_-Real domestic output GDP rs) ®) © 8. Refer to the above diagrams. Assume that all curves have shifted as shown by the arrows. Other things equal, a decline in productivity is depicted by: A) panels (B) and (C). B) panel (A) only. ©) panel (C) only D) panel (B) only Refer to the above diagrams, Assume that all curves have shifted as shown by the arrows. Other things equal, a decline in investment spending caused by the interest-rate effect of a price-level increase is depicted by the: A)_ move from point « to point 6 in panel (B). B) shift of the AD curve in panel (A), (©) move from point a to point c in panel (C). D) shift ofthe AS curve in panel (B) Refer to the above diagrams. Assume that all curves have shifted as shown by the arrows, Other things equal, a decrease in resource prices is depicted by: A) panel (C) only B) panel (A) only 6) panels (B) and (C) D) panel (B) only. Refer to the above diagrams, Assume that all curves have shifted as shown by the arrows, A recession is depicted by: A) panels (A) and (B) B) panel (A) only, ©} panel (B) only. D) panel (C) only. Page 3