Exam 11: Aggregate Supply

The main effect of a decrease in the stock of capital is a(n)

Which of the following is true about real and nominal wages?

Which of the following changes best represents the effect on the U.S. of the oil embargo (a shut-off of oil from certain OPEC countries) of the 1970s?

Which of the following is true regarding the closing of a contractionary gap?

Because some resource prices are assumed to be constant in the short run,

A beneficial supply shock would shift the

Which of the following supply shocks would shift the aggregate supply curve inward?

Which of the following is true in the long run?

Which of the following is generally true of nominal wages?

Exhibit 11-4 -Exhibit 11-4 shows that the

Aggregate supply expresses the relationship between

The potential output of an economy is the level of output produced when the

When the economy is at its potential output level, which of the following is not true?

If workers are willing to work more hours when the nominal wage increases, what can be said about the economic rationality of their decision?

The various output levels produced at different price levels is reflected in the

The real wage represents the

Which of the following occurs as macroeconomic output expands in the short run?

If the economy is experiencing an expansionary gap, which of the following will occur in the long run?

For the purpose of aggregate supply analysis, the long run is the period of time during which

Exhibit 11-2 -In Exhibit 11-2, an expansionary gap would be represented by the distance