Exam 10: Aggregate Supply

If nominal wage rates increase by 2 percent per year and the price level increases by 5 percent per year,real wages will:

The figure below shows the short-run aggregate supply of an economy.Which of the following is likely to be true if the actual price level in this figure exceeds the expected price level?

When the economy's actual price level exceeds the expected price level in the short run:

If resource suppliers and demanders find out that the actual price level exceeds the expected price level,they will take corrective actions that will:

The rate at which aggregate supply changes to restore equilibrium at potential output depends crucially on:

An increase in aggregate demand in the long run will most likely result in:

The figure below shows the short-run aggregate supply curve of an economy.If P3 is the price level prevailing in the economy,_____.

Given the aggregate demand curve,a beneficial supply shock will:

Suppose Jack's salary increased from $100,000 to $200,000 per year between 2004 and 2014 and the price index increased from 100 to 300 during the same period.Which of the following statements best describes Jack's situation?

Which of these changes is observed in an economy when a recessionary gap is closed in the long run?

When the economy produces its potential output,_____ is zero.

In the figure given below,when aggregate supply is AS,the equilibrium output and price level will be Y2 and P2.

The figure below shows the short-run aggregate supply curve of an economy.In this figure,if P1 is the price level prevailing in the economy,it implies that:

An expansionary gap is closed in the long run by a(n):

The figure below shows the determination of the equilibrium price level and real GDP in an aggregate demand-aggregate supply model.If the economy is at point H,there is a(n):

If resource prices are "sticky" downward and a recessionary gap develops,the short-run aggregate supply curve will:

Suppose the actual and expected price levels in an economy are initially equal.However,the actual price level falls eventually due to a change in economic conditions.Which of the following will occur over the long run?

If the expected price level exceeds the actual price level in an economy,_____.

If the price level in an economy turns out to be higher than that expected by workers and firms,_____.

Floods in the Midwest that diminish farm output would shift the aggregate supply curve outward.