17. According to the classical dichotomy, when the money supply doubles, which of the following double?
(A) The price level and nominal GDP
(B) The price level and real GDP
(C) Only real GDP
(D) Only the price level

18. If the actual price level is 165, but people had been expecting it to be 160, then (A) the quantity of output supplied rises, but only in the short run. (B) the quantity of output supplied rises in the short run and the long run. (C) the quantity of output supplied falls, but only in the short run. (D) the quantity of output supplied falls in the short run and the long run.

19. Which of the following correctly explains the crowding-out effect? (A) An increase in government expenditures decreases the interest rate and so increases investment spending. (B) An increase in government expenditures increases the interest rate and so reduces investment spending. (C) A decrease in government expenditures increases the interest rate and so increases investment spending. (D) A decrease in government expenditures decreases the interest rate and so reduces investment spending.

20. The long-run Phillips curve would shift left if (A) the money supply increased or if the minimum wage was reduced. (B) the money supply increased but not if the minimum wage was reduced. (C) the minimum wage was reduced but not if the money supply increased. (D) None of the above.

1. A numerical description of the outcome of an experiment is called a (A) descriptive statistic (B) probability function (C) Variance (D) random variable

2. Twenty percent of the students in a class of 100 are planning to go to graduate school. The standard deviation of this binomial distribution is (A) 20 (B) 16 (C) 4 (D) 2

3. When dealing with the number of occurrences of an event over a specified interval of time or space and when the occurrence or nonoccurrence in any interval is independent of the occurrence or nonoccurrence in any other interval, the appropriate probability distribution is a (A) binomial distribution (B) Poisson distribution (C) normal distribution (D) hypergeometric probability distribution

4. A standard normal distribution is a normal distribution (A) with a mean of 1 and a standard deviation of 0 (B) with a mean of 0 and a standard deviation of 1 (C) with any mean and a standard deviation of 1 (D) with any mean and any standard deviation

5. If P( A ) = 0.4, P(B | A) = 0.35, P(A ∪ B) = 0.69, then P( B ) = (A) 0.14 (B) 0.43 (C) 0.75 (D) 0.59

6. As the sample size becomes larger, the sampling distribution of the sample mean approaches a (A) binomial distribution (B) Poisson distribution (C) normal distribution (D) chi-square distribution

7. A 95% confidence interval for a population mean is determined to be 100 to 120. If the confidence coefficient is reduced to 0.90, the interval for μ (A) becomes narrower (B) becomes wider (C) does not change (D) becomes 0.1

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