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1			The table above shows the aggregate demand and supply schedules for the economy of Adana. Refer to this table when answering the following question. At what level of real output will full employment occur in this economy?
			A)	$600
			B)	$650
			C)	$700
			D)	Cannot be determined from the information given.
2			What is the slope of the aggregate supply curve, according to neoclassical economists?
			A)	Vertical, because prices tend to be inflexible
			B)	Vertical, at the capacity level of output in the economy
			C)	Horizontal, because wages are flexible
			D)	Horizontal, because prices are flexible

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3			Refer to the image above to answer this question. Which of the following statements is true if the economy is at point a?
			A)	Firms will find it hard to hire labour, and people will find it easy to find jobs.
			B)	Wages will eventually be forced down.
			C)	An inflationary gap exists.
			D)	Unemployment is at its natural rate.
			E)	The achievement of full employment must await a decrease in aggregate demand.

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4			Refer to the image above to answer this question. If the economy was initially at point a, then what would a movement to point b suggest?
			A)	The movement could be the result of an increase in aggregate demand.
			B)	The movement could be the result of a decrease in prices.
			C)	The movement could be the result of a decrease in wages.
			D)	It is a movement from one full-employment level of GDP to another.
			E)	The movement could be the result of expansionary monetary policy.
5			What is the slope of the AS curve according to Keynesians?
			A)	Vertical, because prices tend to be inflexible.
			B)	Vertical, at the level of potential GDP.
			C)	Horizontal, because wages are inflexible.
			D)	Downward sloping, because wages are inflexible.