Question :
71) If potential GDP increases,
A) aggregate supply does not : 1240554
71) If potential GDP increases,
A) aggregate supply does not change.
B) the quantity of aggregate supply decreases.
C) aggregate supply increases.
D) the price level rises.
E) the money wage rate must have fallen.
72) When potential GDP increases, the potential GDP line ________, and the aggregate supply curve ________.
A) shifts rightward; shifts rightward
B) shifts rightward; shifts leftward
C) shifts leftward; shifts rightward
D) shifts leftward; shifts leftward
E) shifts rightward; does not shift
73) An increase in ________ increases potential GDP and ________ aggregate supply.
A) technology; increases
B) technology; decreases
C) the money wage rate; increases
D) the money price of oil; decreases
E) the money wage rate; decreases
74) An increase in technology ________ potential GDP and ________ aggregate supply.
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
E) does not change; does not change
75) A technological advance ________ potential GDP, ________ aggregate supply, and shifts the aggregate supply curve ________.
A) increases; increases; leftward
B) decreases; decreases; leftward
C) increases; increases; rightward
D) decreases; increases; rightward
E) increases; decreases; leftward
76) The change in potential real GDP and aggregate supply shown in the graph above can be a result of
A) an increase in the real wage rate.
B) an increase in the quantity of capital.
C) a decrease in the money wage rate.
D) a decrease in the money price of oil.
E) a fall in the price level.
77) As the money wage rate increases,
A) potential GDP increases.
B) potential GDP decreases.
C) aggregate supply increases.
D) aggregate supply decreases.
E) aggregate supply and potential GDP do not change.
78) The change reflected in the above figure might be a result of
A) a decrease in the money wage rate.
B) a decrease in the real wage rate.
C) an increase in the money wage rate.
D) an increase in the real wage rate.
E) a rise in the price level.
79) The change reflected in the above figure might be a result of
A) a decrease in the quantity of capital.
B) an increase in the quantity of labor.
C) a rise in the money wage rate.
D) a decrease in the money prices of resources other than labor.
E) a fall in the price level.
80) Moving along the potential GDP line, the money wage rate changes by the same percentage as the change in the price level so that the real wage rate
A) increases.
B) decreases.
C) stays at the full-employment equilibrium level.
D) might either increase or decrease.
E) stays the same, though not necessarily at the full-employment equilibrium level.
81) The aggregate supply curve is
A) upward sloping.
B) downward sloping.
C) a vertical line.
D) a horizontal line.
E) U-shaped.
82) When the price level falls,
A) the AS curve shifts rightward but the potential GDP line does not shift.
B) there is a movement upward along the AS curve.
C) the AS curve shifts leftward but the potential GDP line does not shift.
D) there is a movement downward along the AS curve.
E) both the potential GDP line and the AS curve shift leftward.
83) As the price level rises relative to costs and the real wage rate falls, profits ________ and the number of firms in business ________.
A) increase; increases
B) increase; decreases
C) decrease; increases
D) decrease; decreases
E) do not change; do not change
84) When potential GDP increases,
A) the AS curve shifts rightward.
B) there is a movement up along the AS curve.
C) the AS curve shifts leftward.
D) there is a movement down along the AS curve.
E) there is neither a movement along nor a shift in the AS curve.
85) If the money wage rate rises,
A) the AS curve shifts rightward.
B) there is a movement up along the AS curve.
C) the AS curve shifts leftward.
D) there is a movement down along the AS curve.
E) there is neither a movement along or a shift in the AS curve.
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