Answer key to sample problems for final exam

Look at the copy of the review sheet on the I-drive. I failed to edit out one important line before I sent the document to print (see p. 1). Also, I've updated the readings for Chapter 30. Read up to page 578.

Here is the key. Let me know if there are any errors.

1-A, 2-C, 3-D, 4-E*, 5-D, 6-D, 7-B,
8-A, 9-C, 10-B, 11-C, 12-C,
13-B, 14-A, 15-C, 16-D, 17-B, 18-B,
19-D, 20-C, 21-B, 22-A, 24-B, 25-C, 26-C,
27-B, 28-C, 29-B, 20-C, 31-C,
on page 6, renumbering starts at 18 again...
18-B, 19-A, 20-B, 21-A, 22-C, 23-B, 24-A, 25-B.

* I don't think any of these is correct for number 4. E would be "none of the above". A, B, and D all reduce aggregate demand, shifting it to the left. And since the price level is included in the definition of the AD, a fall in the price level merely increases the quantity of aggregate output demanded, but it does NOT shift the AD curve. (P is on the vertical axis.) So, sorry. I think none of these is correct.