Question 1

The short-run aggregate supply curve is ________ and the long-run aggregate supply curve is _________.

Accepted Answer

A) upward sloping; horizontal 
B) vertical; upward sloping 
C) vertical; horizontal 
D) upward sloping; vertical 
E) none of the above 
A) upward sloping; horizontal 
B) vertical; upward sloping 
C) vertical; horizontal 
D) upward sloping; vertical 
E) none of the above

Question 2

Which of the following statements represents a correct and sequentially accurate economic explanation?

Accepted Answer

A) Wage rates rise, SRAS rises, and the SRAS curve shifts to the left. 
B) The prices of nonlabor inputs rise, SRAS decreases, and the SRAS curve shifts to the right. 
C) Labor productivity rises, SRAS increases, and the SRAS curve shifts to the right. 
D) An adverse supply shock hits, SRAS decreases, and the SRAS curve shifts to the right. 
E) a and c 
A) Wage rates rise, SRAS rises, and the SRAS curve shifts to the left. 
B) The prices of nonlabor inputs rise, SRAS decreases, and the SRAS curve shifts to the right. 
C) Labor productivity rises, SRAS increases, and the SRAS curve shifts to the right. 
D) An adverse supply shock hits, SRAS decreases, and the SRAS curve shifts to the right. 
E) a and c

Question 3

In a two-country world, an increase in foreign input prices, ceteris paribus,

Accepted Answer

A) shifts the SRAS curve leftward, causing the price level to increase. 
B) shifts the SRAS curve leftward, causing the price level to decrease. 
C) shifts the SRAS curve rightward, causing the price level to increase. 
D) shifts the SRAS curve rightward, causing the price level to decrease. 
E) does not affect the SRAS curve or the price level. 
A) shifts the SRAS curve leftward, causing the price level to increase. 
B) shifts the SRAS curve leftward, causing the price level to decrease. 
C) shifts the SRAS curve rightward, causing the price level to increase. 
D) shifts the SRAS curve rightward, causing the price level to decrease. 
E) does not affect the SRAS curve or the price level.

Question 4

If consumption changes because of a change in a factor other than the price level, then the

Accepted Answer

A) economy moves from one point on an AD curve to another point on the same curve. 
B) AD curve shifts. 
C) economy moves from one point on a short-run aggregate supply (SRAS) curve to another point on the same curve. 
D) SRAS curve shifts. 
E) none of the above 
A) economy moves from one point on an AD curve to another point on the same curve. 
B) AD curve shifts. 
C) economy moves from one point on a short-run aggregate supply (SRAS) curve to another point on the same curve. 
D) SRAS curve shifts. 
E) none of the above

The short-run aggregate supply curve is and the long-run aggregate supply curve is _.

Which of the following statements represents a correct and sequentially accurate economic explanation?

In a two-country world, an increase in foreign input prices, ceteris paribus,

If consumption changes because of a change in a factor other than the price level, then the

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand Theory

Prices Free Controlled and Relative

Supply Demand and Price Applications

Macroeconomic Measurements Part I Prices and Unemployment

Macroeconomic Measurements Part II Gdp and Real Gdp

Classical Macroeconomics and the Self Regulating Economy

Keynesian Macroeconomics and Economic Instability a Critique of the Self Regulating Economy

Fiscal Policy and the Federal Budget

Money Banking and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth Resources Technology Ideas and Institutions

Debates in Macroeconomics Over the Role and Effects of Government

Elasticity

Consumer Choice and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition Oligopoly and Game Theory

Government and Product Markets Antitrust and Regulation

Factor Markets With Emphasis on the Labor Market

Wages Unions and Labor

The Distribution of Income and Poverty

Interest Rent and Profit

Market Failure Externalities Public Goods and Asymmetric Information

Public Choice and Special Interest Group Politics

Building Theories to Explain Everyday Life From Observations to Questions to Theories to Predictions

International Trade

International Finance

The Economic Case for and Against Government Five Topics Considered

Stocks Bonds Futures and Options

Filters

Exam 8: Aggregate Demand and Aggregate Supply

The short-run aggregate supply curve is ________ and the long-run aggregate supply curve is _________.

Which of the following statements represents a correct and sequentially accurate economic explanation?

In a two-country world, an increase in foreign input prices, ceteris paribus,

If consumption changes because of a change in a factor other than the price level, then the

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand Theory

Prices Free Controlled and Relative

Supply Demand and Price Applications

Macroeconomic Measurements Part I Prices and Unemployment

Macroeconomic Measurements Part II Gdp and Real Gdp

Classical Macroeconomics and the Self Regulating Economy

Keynesian Macroeconomics and Economic Instability a Critique of the Self Regulating Economy

Fiscal Policy and the Federal Budget

Money Banking and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth Resources Technology Ideas and Institutions

Debates in Macroeconomics Over the Role and Effects of Government

Elasticity

Consumer Choice and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition Oligopoly and Game Theory

Government and Product Markets Antitrust and Regulation

Factor Markets With Emphasis on the Labor Market

Wages Unions and Labor

The Distribution of Income and Poverty

Interest Rent and Profit

Market Failure Externalities Public Goods and Asymmetric Information

Public Choice and Special Interest Group Politics

Building Theories to Explain Everyday Life From Observations to Questions to Theories to Predictions

International Trade

International Finance

The Economic Case for and Against Government Five Topics Considered

Stocks Bonds Futures and Options

Filters

The short-run aggregate supply curve is and the long-run aggregate supply curve is _.