Question 1

The economy's aggregate supply (AS)curve is assumed to slope upward because

Accepted Answer

A) inputs become more expensive at higher levels of output. 
B) inputs become less expensive at higher levels of output. 
C) firms' unit costs rise as output increases. 
D) firms' unit costs fall as output increases. 
E) aggregate demand increases at higher levels of national income. 
A) inputs become more expensive at higher levels of output. 
B) inputs become less expensive at higher levels of output. 
C) firms' unit costs rise as output increases. 
D) firms' unit costs fall as output increases. 
E) aggregate demand increases at higher levels of national income.

Question 2

FIGURE 23-4
-Refer to Figure 23-4.Suppose the Canadian economy is initially in equilibrium at point A.An unexpected shock then shifts both the AD and the AS curves as shown and results in a new equilibrium represented by point B.Which of the following events could cause such a shock?

Accepted Answer

A) an increase in the net tax rate 
B) a decrease in firms' desired investment expenditures 
C) an increase in factor prices 
D) a decrease in labour productivity 
E) a decrease in the world price of oil 
A) an increase in the net tax rate 
B) a decrease in firms' desired investment expenditures 
C) an increase in factor prices 
D) a decrease in labour productivity 
E) a decrease in the world price of oil

The economy's aggregate supply (AS)curve is assumed to slope upward because

FIGURE 23-4 -Refer to Figure 23-4.Suppose the Canadian economy is initially in equilibrium at point A.An unexpected shock then shifts both the AD and the AS curves as shown and results in a new equilibrium represented by point B.Which of the following events could cause such a shock?

Economic Issues and Concepts

Economic Theories,Data,and Graphs

Demand, Supply, and Price

Elasticity

Price Controls and Market Efficiency

Consumer Behaviour

Producers in the Short Run

Producers in the Long Run

Competitive Markets

Monopoly, cartels, and Price Discrimination

Imperfect Competition and Strategic Behaviour

Economic Efficiency and Public Policy

How Factor Markets Work

Labour Markets and Income Inequality

Interest Rates and the Capital Market

Market Failures and Government Intervention

The Economics of Environmental Protection

Taxation and Public Expenditure

What Macroeconomics Is All About

The Measurement of National Income

The Simplest Short-Run Macro Model

Adding Government and Trade to the Simple Macro Model

From the Short Run to the Long Run: The Adjustment of Factor Prices

Long-Run Economic Growth

Money and Banking

Money, Interest Rates, and Economic Activity

Monetary Policy in Canada

Inflation and Disinflation

Unemployment Fluctuations and the Nairu

Government Debt and Deficits

The Gains From International Trade

Trade Policy

Exchange Rates and the Balance of Payments

Filters

Exam 23: Output and Prices in the Short Run

The economy's aggregate supply (AS)curve is assumed to slope upward because

FIGURE 23-4 -Refer to Figure 23-4.Suppose the Canadian economy is initially in equilibrium at point A.An unexpected shock then shifts both the AD and the AS curves as shown and results in a new equilibrium represented by point B.Which of the following events could cause such a shock?

Economic Issues and Concepts

Economic Theories,Data,and Graphs

Demand, Supply, and Price

Elasticity

Price Controls and Market Efficiency

Consumer Behaviour

Producers in the Short Run

Producers in the Long Run

Competitive Markets

Monopoly, cartels, and Price Discrimination

Imperfect Competition and Strategic Behaviour

Economic Efficiency and Public Policy

How Factor Markets Work

Labour Markets and Income Inequality

Interest Rates and the Capital Market

Market Failures and Government Intervention

The Economics of Environmental Protection

Taxation and Public Expenditure

What Macroeconomics Is All About

The Measurement of National Income

The Simplest Short-Run Macro Model

Adding Government and Trade to the Simple Macro Model

From the Short Run to the Long Run: The Adjustment of Factor Prices

Long-Run Economic Growth

Money and Banking

Money, Interest Rates, and Economic Activity

Monetary Policy in Canada

Inflation and Disinflation

Unemployment Fluctuations and the Nairu

Government Debt and Deficits

The Gains From International Trade

Trade Policy

Exchange Rates and the Balance of Payments

Filters