Question : 21) Because there a ________ relationship between the price level : 1238140

21) Because there is a ________ relationship between the price level and the quantity of real GDP supplied, the aggregate supply curve is ________ curve.

A) negative; an upward-sloping

B) positive; a downward-sloping

C) positive; an upward-sloping

D) negative; a downward-sloping

E) positive; a vertical

22) The aggregate supply curve is a(n) ________ curve because it represents the relationship between price level and the quantity of real GDP supplied, two items that are ________ correlated.

A) upward-sloping; negatively

B) downward-sloping; positively

C) upward-sloping; positively

D) downward-sloping; negatively

E) vertical; not

23) If there is a rise in the price level, there is ________ in the quantity of real GDP supplied and a movement ________ along the AS curve.

A) a decrease; downward

B) an increase; upward

C) an increase; downward

D) a decrease; upward

E) no change; upward

24) If there is a rise in the price level, there is a(n) ________ movement along the AS curve because there is ________ in the quantity of real GDP supplied.

A) downward; a decrease

B) upward; an increase

C) downward; an increase

D) upward; a decrease

E) upward; no change

25) If the price level increases from 110.0 to 115.0, the quantity of

A) real GDP supplied will increase.

B) real GDP supplied will decrease.

C) potential GDP will decrease.

D) real GDP demanded will increase.

E) potential GDP will increase.

26) A change in the price level

A) shifts the aggregate supply curve rightward.

B) shifts the potential GDP line.

C) shifts the aggregate supply curve leftward.

D) changes the quantity of real GDP supplied.

E) shifts the aggregate demand curve leftward.

27) The quantity of real GDP supplied increases when the price level increases because

A) investment increases.

B) the quantity of money increases.

C) the real wage rate falls.

D) the real wage rate rises.

E) aggregate demand increases.

28) The quantity of real GDP supplied ________ when the price level increases because ________.

A) decreases; investment increases

B) increases; the quantity of money increases

C) increases; the real wage rate falls

D) decreases; the real wage rate rises

E) increases; aggregate demand increases

29) During 2010, a country reports that its price level fell and the money wage rate did not change. These changes led to

A) a higher real wage rate, lower profits, and a decrease in the quantity of real GDP supplied.

B) a higher real wage rate, higher profits, and an increase in the quantity of real GDP supplied.

C) a lower real wage rate, lower profits, and a decrease in the quantity of real GDP supplied.

D) a lower real wage rate, higher profits, and an increase in the quantity of real GDP supplied.

E) no change in the real wage rate and an increase in aggregate demand.

30) During 2012, a country reports that its price level fell and the money wage rate did not change. These changes led to a(n) ________ because their country experienced a(n) ________.

A) decrease in the quantity of real GDP supplied; higher real wage rate and lower profits for firms

B) increase in the quantity of real GDP supplied; higher real wage rate and lower profits for firms

C) decrease in the quantity of real GDP supplied; lower real wage rate and lower profits for firms

D) increase in the quantity of real GDP supplied; lower real wage rate and higher profits for firms

E) decrease in aggregate demand; economic expansion