Question :
11) If the economy operating the relatively vertical segment of : 1381462
11) If the economy is operating on the relatively vertical segment of the aggregate supply curve, an increase in aggregate demand causes a small change in the ________ and a big change in ________.
A) aggregate demand; aggregate supply
B) aggregate supply; aggregate demand
C) output; price level
D) price level; output
12) If the economy is operating way below capacity, an increase in aggregate demand causes a big change in the ________ and small change in ________.
A) aggregate demand; aggregate supply
B) aggregate supply; aggregate demand
C) output; price level
D) price level; output
13) An increase in aggregate demand when the economy is operating at ________ is likely to result in an increase in the overall price level and ________ in output.
A) high levels of output; a large increase
B) high levels of output; little or no increase
C) low levels of output; a decrease
D) low levels of output; no change
14) An increase in aggregate demand when the economy is operating ________ is likely to result in an increase in the overall price level and ________ in output.
A) below full capacity; a decrease
B) below full capacity; no increase
C) at full capacity; a decrease
D) at full capacity; no increase
15) A decrease in the price level is likely to decrease the aggregate amount of output supplied in the short run because
A) interest rate is high in the short run.
B) wages are sticky in the short run.
C) wages change in the short run.
D) the aggregate supply curve is vertical in the short run.
16) When the economy is producing ________, the aggregate supply curve becomes vertical.
A) below full capacity
B) beyond full capacity
C) at full capacity
D) at negative capacity
17) A movement up the aggregate supply curve is caused by a(n)
A) increase in aggregate supply.
B) decrease in aggregate supply.
C) increase in the price level.
D) decrease in the price level.
18) Natural gas is used as a source of energy in many manufacturing processes. Assume a long strike by natural gas workers reduced the supply of natural gas and increased the price of natural gas. This would cause
A) the short-run aggregate supply curve to shift to the right.
B) the short-run aggregate supply curve to become flatter.
C) the short-run aggregate supply curve to shift to the left.
D) the short-run aggregate supply curve to become nearly vertical at all levels of output.
19) If the United States were to pass legislation that would make it harder for people to emigrate to the United States, this would cause
A) the short-run aggregate supply curve to become nearly vertical at all levels of output.
B) the short-run aggregate supply curve to shift to the left.
C) the short-run aggregate supply curve to become flatter.
D) the short-run aggregate supply curve to shift to the right.
20) Which of the following shifts the short-run aggregate supply curve?
A) a change in the price level
B) a change in the price of oil
C) a change in short-run aggregate demand
D) all of the above
