An anticipated change is an economic occurrence that
a. catches most people by surprise.
b. is foreseen by most economic participants.
c. is anticipated by economists but unforeseen by other people.
d. is foreseen by policy makers but unforeseen by the public.

An unanticipated economic event is a change that
a. catches most people by surprise.
b. was foreseen by most economic participants.
c. is the result of a steady long-term trend in an economic variable.
d. was forecast by most economists.

Which of the following will most likely be an unanticipated economic change?
a. higher oil prices resulting from a revolution in an oil-exporting country such as Libya
b. this year’s increase in the labor force
c. a constant increase in the general level of prices over a lengthy period of time
d. an increase in prime-age workers as a proportion of the labor force

A currency appreciation will be most likely to
a. reduce net exports and therefore increase aggregate demand.
b. raise net exports and therefore decrease aggregate demand.
c. reduce net exports and therefore decrease aggregate demand.
d. raise net exports and therefore increase aggregate demand.

Which of the following factors would increase aggregate demand in the goods and services market?
a. an decrease in stock prices
b. an increase in the real interest rate
c. a decrease in real incomes abroad
d. increased optimism on the part of consumers and businesses

Which of the following will most likely increase aggregate demand?
a. a decrease in stock market prices
b. a lower real interest rate
c. a decrease in the expected inflation rate
d. a decrease in real GDP

Which of the following would be most likely to cause a reduction in current aggregate demand in the United States?
a. increased fear of a recession
b. an increase in the expected rate of inflation
c. a sharp increase in the value of stocks owned by Americans
d. a rapid increase in the…