The positive relationship between the short-run aggregate supply function and the ________

The positive relationship between the short-run aggregate supply function and the ________

The positive relationship between the short-run aggregate supply function and the ________ suggests that, in the short run, firms produce more output as the price levels rises.

A) long-run aggregate supply

B) price level

C) demand for labour

D) inflation rate

 

32) As the price level increases, the short-run aggregate supply curve

A) becomes increasingly steep.

B) begins to level out.

C) shifts inward.

D) does not change.

33) As the price level increases, the ________ becomes increasingly steep.

A) short-run aggregate supply curve

B) aggregate demand curve

C) long-run aggregate supply curve

D) planned aggregate expenditure curve

 

34) As the price level decreases, the short-run aggregate supply curve

A) becomes increasingly steep.

B) begins to level out.

C) shifts inward.

D) does not change.

 

35) As the price level decreases, the ________ begins to level out.

A) planned aggregate expenditure curve

B) short-run aggregate supply curve

C) long-run aggregate supply curve

D) planned aggregate expenditure curve.

 

36) As the price level ________,the short-run aggregate supply curve begins to level out.

A) becomes increasingly steep.

B)  decreases

C) shifts inward.

D) does not change.

37) As the ________ decreases, the short-run aggregate supply curve begins to level out.

A) inflation rate

B) price level

C) unemployment rate

D) labour force participation rate

38) As the price level                 , the short-run aggregate supply curve becomes increasingly steep.

A) increases

B) begins to level out.

C) shifts inward.

D) does not change.

 

39) As the ________ increases, the short-run aggregate supply curve becomes increasingly steep.

A) price level

B) inflation rate

C) unemployment rate

D) labour force participation rate

 

40) We distinguish between the long-run aggregate supply curve and the short-run aggregate supply curve. In the long run

A) technology is fixed but not in the short run.

B) the price level is constant but in the short run it fluctuates.

C) the aggregate supply curve is horizontal while in the short run it is upward sloping.

D) all adjustments to changes in the price level have been made, but in the short run all changes in the price level cannot be made.