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The long-run aggregate supply curve will shift to the right when A) population increases.

The long-run aggregate supply curve will shift to the right when A) population increases.

The long-run aggregate supply curve will shift to the right when

A) population increases.

B) the price level increases.

C) technology improves.

D) labour supply falls.

52) Which of the following would cause the long-run aggregate supply curve to shift to the right?

A) An increase in wages

B) An increase in demand

C) An increase in productivity

D) An increase in taxes on profits

53) An increase in productivity

A) would cause the short-run aggregate supply curve to shift to the left.

B) would cause the long-run aggregate supply curve to shift to the left.

C) would cause the short-run aggregate supply curve to shift to the right.

D) would cause the long-run aggregate supply curve to shift to the right.

 

54) An increase in ________ would cause the long-run aggregate supply curve to shift to the right.

A) the demand for labour

B) the unemployment rate

C) inflation

D) productivity

 

55) An increase in the labour force while holding population constant will

A) increase aggregate demand and real GDP, but have no effect on the price level.

B) increase aggregate demand and aggregate supply by the same amounts, causing real GDP to increase and the price level to remain constant.

C) increase aggregate supply and real GDP, but have no effect on the price level.

D) increase aggregate supply and real GDP and lower the price level.

 

56) The effect of an adverse demand shock is to

A) increase the level of aggregate demand.

B) cause prices to fall.

C) increase the firm's cost of producing at every level of output.

D) increase the level of employment.

57) The effect of a positive demand shock is to

A) decrease the level of aggregate demand.

B) cause prices to rise.

C) decrease the firm's cost of producing at every level of output.

D) decrease the level of employment.

 

58) An unexpected event that causes the aggregate demand curve to shift inward or outward is an

A) aggregate demand shock.

B) aggregate supply shock.

C) aggregate supply increase.

D) aggregate supply decrease.

 

59) An aggregate demand shock is generally referred to as

A) an unexpected event that causes the aggregate demand curve to shift inward or outward.

B) an expected event that causes the aggregate demand curve to shift inward or outward.

C) an unexpected event that causes the long-run aggregate supply curve to shift inward or outward.

D) an unexpected event that causes the short-run aggregate supply curve to shift inward or outward.

 

60) A short-run equilibrium occurs

A) at the intersection of the short-run aggregate supply curve and the long-run aggregate supply curve.

B) at the intersection of the short-run aggregate supply curve and the aggregate demand curve.

C) at the intersection of the short-run aggregate supply curve, the long-run aggregate supply curve, and the aggregate demand curve.

D) when the rate at which prices increase equals the rate at which input prices increase.

Abhinav 07-Dec-2019

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