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Aggregate Supply - Practice Quiz

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Zachary Foust

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Module 18


Module 18Versión en línea Aggregate Supply - Practice Quiz por Zachary Foust 1 Which of the following best explains why the short-run aggregate supply curve slopes upward? a Wages are flexible in the long-run. b Wages are flexible in the short-run. c Wages are sticky in the short-run. 2 Which of the following best explains why the long-run aggregate supply curve is vertical? a Wages are flexible in the long-run. b Wages are sticky in the long-run. c Wages are sticky in the short-run. 3 Which of the following is represented by the long-run aggregate supply curve? a Current output b Potential output c Real GDP demanded 4 Assume that the economy starts at the full employment level of output. Then, the government pays for the construction of physical capital such as roads, bridges, and dams. Will the increase in the amount of physical capital cause long-run aggregate supply to increase, decrease, or remain unchanged? a Long-run aggregate supply will increase. b Long-run aggregate supply will decrease. c Long-run aggregate supply will remain unchanged. 5 Assume that the economy starts at the full employment level of output. Then, the price level rises from 100 to 120. In the long-run, will real GDP supplied increase, decrease, or remain unchanged? a Real GDP supplied will increase. b Real GDP supplied will decrease. c Real GDP supplied will remain unchanged. 6 Assume that the economy starts at the full employment level of output. Then, the price level rises from 100 to 120. In the short-run, will real GDP supplied increase, decrease, or remain unchanged? a Real GDP supplied will increase. b Real GDP supplied will decrease. c Real GDP supplied will remain unchanged. 7 Assume that the economy starts at the full employment level of output. Then, the price of oil increases. Will short-run aggregate supply increase, decrease, or remain unchanged? a Short-run aggregate supply will increase. b Short-run aggregate supply will decrease. c Short-run aggregate supply will remain unchanged. 8 Assume that the economy starts at the full employment level of output. Then, productivity increases. Will short-run aggregate supply increase, decrease, or remain unchanged? a Short-run aggregate supply will increase. b Short-run aggregate supply will decrease. c Short-run aggregate supply will remain unchanged. 9 Assume that the economy starts at the full employment level of output. Then, nominal wages increase. Will short-run aggregate supply increase, decrease, or remain unchanged? a Short-run aggregate supply will increase. b Short-run aggregate supply will decrease. c Short-run aggregate supply will remain unchanged. 10 Assume that the economy starts at the full employment level of output. Then, the expected rate of inflation increases. Will short-run aggregate supply increase, decrease, or remain unchanged? a Short-run aggregate supply will increase. b Short-run aggregate supply will decrease. c Short-run aggregate supply will remain unchanged.

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Module 18Versión en línea

por Zachary Foust

Which of the following best explains why the short-run aggregate supply curve slopes upward?

Which of the following best explains why the long-run aggregate supply curve is vertical?

Which of the following is represented by the long-run aggregate supply curve?

Assume that the economy starts at the full employment level of output. Then, the government pays for the construction of physical capital such as roads, bridges, and dams. Will the increase in the amount of physical capital cause long-run aggregate supply to increase, decrease, or remain unchanged?

Assume that the economy starts at the full employment level of output. Then, the price level rises from 100 to 120. In the long-run, will real GDP supplied increase, decrease, or remain unchanged?

Assume that the economy starts at the full employment level of output. Then, the price level rises from 100 to 120. In the short-run, will real GDP supplied increase, decrease, or remain unchanged?

Assume that the economy starts at the full employment level of output. Then, the price of oil increases. Will short-run aggregate supply increase, decrease, or remain unchanged?

Assume that the economy starts at the full employment level of output. Then, productivity increases. Will short-run aggregate supply increase, decrease, or remain unchanged?

Assume that the economy starts at the full employment level of output. Then, nominal wages increase. Will short-run aggregate supply increase, decrease, or remain unchanged?

Assume that the economy starts at the full employment level of output. Then, the expected rate of inflation increases. Will short-run aggregate supply increase, decrease, or remain unchanged?