Exam 11: Aggregate Supply

Exhibit 10-6 -In Exhibit 10-6,long-run equilibrium would be established by

The key resource underlying aggregate supply is

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

Given implicit or explicit resource price agreements,if the actual price level is below the expected price level,the

As actual output rises above the potential level,which of the following must be true?

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

In the long run,the economy will produce at potential output if

Exhibit 10-2 -If the actual price level in Exhibit 10-2 exceeds the expected price level,then

The expected price level is significant because

Which of the following is not assumed to be constant along a short-run aggregate supply curve?

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

Which of the following is true in the long run?

If the economy were at its potential output level,which of the following would not be true?

Increases in the costs of production will shift the short-run aggregate supply curve to the left.

Exhibit 10-12 -Consider Exhibit 10-12.Aggregate demand is represented by AD₀ and the aggregate supply is AS₁₀₀ since the expected price level is 100.Which of the following identifies the the short-run equilibrium?

If nominal wage rates increase by 2 percent per year and the price level increases by 5 percent per year,real wages will

If global pollution causes climatic changes that permanently harm crop production worldwide,aggregate supply and demand analysis would lead us to expect

Exhibit 10-7 -The graph in Exhibit 10-7 shows a(n)

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

Real wages are nominal wages adjusted for price changes.