Exam 10: Aggregate Supply

Given the aggregate demand curve,an increase in the supply of a productive resource will:​

At the potential level of output,there is no seasonal unemployment.​

Which of the following is true when an economy is in long-run equilibrium?​

​The aggregate demand-aggregate supply model shows that closing an expansionary gap involves deflation and closing a recessionary gap involves inflation.

Which of the following is generally true of nominal wages?​

In a particular year,if the price level rises by 4 percent and the nominal wage of workers rises by 6 percent,we can conclude that the real wage has:​

If the actual price level is higher than the expected price level,the economy will:​

An economy's potential level of output can be altered by changes in:​

The nominal wage represents:​

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 the following does not influence the position of the long-run aggregate supply curve?​

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

Suppose the price level increases by 5 percent and the nominal wages of workers increase by 3 percent during a particular year.This implies that the real wage has:​

Suppose an economy is initially in long-run equilibrium and it then experiences a supply shock in the form of exceptionally high energy prices.Which of these will be true in this economy?​

Consider schedule #1 in the aggregate demand and aggregate supply table given below.The equilibrium output and price level for the economy described on this schedule are:​ ​ Table 10.1 ​ Quantity of Aggregate Output Demanded ​ Price Level Quantity of Aggregate Output Supplied #1 #2 #3 $7)0 110 $5)0 $6)0 $4)0 6)5 120 5)5 6)5 4)5 6)0 130 6)0 7)0 5)0 5)5 140 6)5 7)5 5)5 5)0 150 7)0 8)0 6)0

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

A failure in coordination between workers and employers is most likely to cause an expansionary gap.​

An expansionary gap generally creates inflationary pressure in an economy.​

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:​ ​ Figure 10.1

Stagflation is defined as:​