Exam 12: Aggregate Supply

In the short run, real and nominal GDP will both decrease whenever

Which of the following is true in the long run?

If nominal wages are sticky in the downward direction,

The short-run aggregate supply curve slopes upward because quantity supplied

One explanation for the persistently high unemployment rates in Europe during the 1990s is

In the long run, an increase in aggregate demand will cause

Which of the following would shift the LRAS curve to the left?

The potential level of output can be altered by changes in

Exhibit 11-5 -If the economy is at point M in Exhibit 11-5,

A decrease in the expected price level will shift the short-run aggregate supply curve.

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

The key resource underlying aggregate supply is

Which of the following would shift the LRAS curve to the right?

If the inflation rate is 4 percent a year and everyone expected 2 percent a year, then the potential level of real GDP will increase.

If the expected price level falls below the actual price level,

Aggregate supply expresses the relationship between

If the expected price level exceeds the actual price level

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

Which of the following types of unemployment can exist in an economy that is at its potential output level?

In the long run, the price level is determined by aggregate supply.