Exam 10: Aggregate Supply

At the potential level of output,there is no seasonal unemployment.

When resource prices are negotiable,the long-run aggregate supply curve is represented by:

Potential output is the amount produced when:

If the price level in the current year is much higher than the expected price level,_____.

If global pollution causes climatic changes that permanently harm crop production worldwide,aggregate supply and demand analysis would lead us to expect:

Identify the correct statement.

The figure below shows short-run equilibrium in an aggregate demand-aggregate supply model.If the economy is currently producing Y1 level of output,long-run equilibrium will be established if:

Given implicit or explicit resource price agreements,if the actual price level is below the expected price level,the:

In the long run,an economy will produce its potential output if:

If the actual price level is lower than the expected price level,the economy will contract in the short run.

A recessionary gap develops:

Which of the following is true of a beneficial supply shock?

Which of these is most likely to shift the long-run aggregate supply curve to the left?

The short-run aggregate supply curve shows a(n):

The capital stock of an economy increases:

Given a downward-sloping aggregate demand curve,if short-run aggregate supply increases,real GDP must increase and nominal GDP must fall.

Suppose the actual and expected price levels in an economy are initially equal.However,the actual price level becomes higher due to some change in economic conditions.Which of the following will occur eventually?

In the long run,the price level is determined by aggregate supply.

As actual output falls below the potential level in the short run,which of the following is most likely to occur?

If the rate of increase in the price level exceeds the rate of increase in nominal GDP,real GDP declines.