Exam 10: Aggregate Supply

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

The figure below shows equilibrium in an aggregate demand-aggregate supply model. In this figure, the shift from AS to AS' is likely to occur when:

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

Which of the following is true?

The figure below shows the short-run aggregate supply curve of an economy. In this figure, a recessionary gap would be represented by the distance between:

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

The figure given below depicts long run equilibrium in an aggregate demand-aggregate supply model. Which of these could have caused the movement shown in this figure?

The nominal cost per unit of output rises when production is pushed beyond an economy's potential output.

Which of the following is true if marginal costs increase at a slow rate as output increases?

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

In the long run, a decrease in aggregate demand will lead to a(n):

Which of the following if true would suggest that an expansionary gap exists in an economy?

If resource prices are flexible, the long-run aggregate supply curve is vertical.

Which of the following is true in the short run?

The figure below shows short-run equilibrium in an aggregate demand-aggregate supply model. In this figure, the distance between points Y₁ and Y₂ represents:

Which of the following is most likely to increase long-run aggregate supply in an economy?

In the long run, a leftward shift of the aggregate demand curve will lead to a(n):

A recessionary gap develops:

In the long run, the price level in an economy is determined solely by:

The figure given below depicts long-run equilibrium in the aggregate demand-aggregate supply model. Which of the following changes is depicted by the movement from Y₁ to Y₂?