Question : 81) The aggregate supply curve will shift as a result : 1384399

 

 

81) The aggregate supply curve will shift as a result of a change in

1) the wage rate;

2) the price level;

3) technology.

A) 1 only

B) 2 only

C) 3 only

D) 1 and 3

E) 2 and 3

Answer:  D

Diff: 2

Topic:  23.2. slope and shifts of the AS curve

Skill:  Applied

User2:  Qualitative

82) The aggregate supply curve tends to be relatively steep when GDP is above potential output because firms are operating above ________ and ________ are rising rapidly.

A) equilibrium output; unit costs

B) profit-maximizing output; total costs

C) capacity; unit costs

D) equilibrium output; total costs

E) equilibrium output; average costs

Answer:  C

Diff: 2

Topic:  23.2. slope and shifts of the AS curve

Skill:  Recall

User2:  Qualitative

 

83) The aggregate supply curve is usually assumed to get progressively steeper at relatively higher levels of output because

A) of increasing factor prices.

B) of increasing productivity of the factors of production.

C) of diminishing marginal productivity of the factors of production.

D) of rising competition among price setters.

E) of excess capacity at higher levels of output.

Answer:  C

Diff: 2

Topic:  23.2. slope and shifts of the AS curve

Skill:  Recall

User2:  Qualitative

 

84) Consider the basic AD/AS model. If firms’ unit costs remained constant as firms increased their output levels, this would lead to a

A) vertical AD curve.

B) horizontal AD curve.

C) vertical AS curve.

D) horizontal AS curve.

E) horizontal AE curve.

Answer:  D

Diff: 2

Topic:  23.2. slope and shifts of the AS curve

Skill:  Applied

Objective:  REVISED

User2:  Qualitative

 

85) The concept of “demand-determined output” requires ________ to remain constant as output increases.

A) technology of production

B) government purchases

C) firms’ unit costs

D) labour productivity

E) the ratio of price setters to price takers

Answer:  C

Diff: 2

Topic:  23.2. slope and shifts of the AS curve

Skill:  Applied

User2:  Qualitative

 

FIGURE 23-2

 

86) Refer to Figure 23-2. Which of the following events could cause the upward shift of the AS curve?

A) a decrease in the price of raw materials

B) a decrease in the world supply of oil as a result of a major hurricane

C) improved quality of the national education system

D) rapid technological advances in mass production

E) an increase in consumption

Answer:  B

Diff: 2

Topic:  23.2. slope and shifts of the AS curve

Skill:  Applied

User1:  Graph

User2:  Qualitative

 

87) Refer to Figure 23-2. Which of the following events could cause the upward shift of the AS curve?

A) improvements in communications technology

B) a decrease in business confidence that reduces desired investment

C) a recession in the U.S. that reduces our net exports

D) a major discovery of new oil reserves that will increase the world supply

E) a massive drought that reduces agricultural output

Answer:  E

Diff: 2

Topic:  23.2. slope and shifts of the AS curve

Skill:  Applied

Objective:  NEW

User1:  Graph

User2:  Qualitative

88) Refer to Figure 23-2. The shift from to shown in the diagram is referred to as a(n)

A) increase in aggregate supply.

B) increase in unit costs.

C) negative aggregate supply shock.

D) positive aggregate supply shock.

E) decrease in unit costs.

Answer:  C

Comment:  An algorithmic version of this question appears in MyEconLab

Diff: 1

Topic:  23.2. slope and shifts of the AS curve

Skill:  Applied

User1:  Graph

User2:  Qualitative

 

89) Macroeconomic equilibrium is described as the combination of

A) potential output and price level that is on both the AD curve and AS curve.

B) real GDP and price level that is on both the AD curve and 45-degree line.

C) real GDP and price level that is on both the AD curve and AS curve.

D) all individual demand curves and all individual supply curves.

E) all individual demand curves and potential GDP.

Answer:  C

Diff: 1

Topic:  23.3a. macroeconomic equilibrium

Skill:  Recall

User2:  Qualitative

 

90) Consider the nature of macroeconomic equilibrium. If, at a particular price level, aggregate output demanded is less than that supplied by producers, then

A) the price level will rise toward its equilibrium value.

B) the price level will decline toward its equilibrium value.

C) the aggregate demand curve will shift to the right, re-establishing an equilibrium.

D) the aggregate supply curve will shift to the left, re-establishing an equilibrium.

E) the aggregate supply curve will shift to the right, re-establishing an equilibrium.

Answer:  B

Diff: 1

Topic:  23.3a. macroeconomic equilibrium

Skill:  Applied

User2:  Qualitative