Question : 51) The ________ curve has a positive slope because as : 1244779

 

 

51) The ________ curve has a positive slope because as prices of final goods and services rise, prices of inputs rise more slowly.

A) short-run aggregate supply

B) long-run aggregate supply

C) short-run aggregate demand

D) long-run aggregate demand

 

52) Which of the following is not a reason why the wages of workers and the prices of inputs rise more slowly than the prices of final goods and services?

A) Contracts make prices and wages “sticky.”

B) Firms are often slow to adjust wages.

C) Menu costs make some prices sticky.

D) Unions are successful in pushing up wages.

 

53) A decrease in the price level will

A) shift the short-run aggregate supply curve to the left.

B) shift the short-run aggregate supply curve to the right.

C) move the economy up along a stationary short-run aggregate supply curve.

D) move the economy down along a stationary short-run aggregate supply curve.

 

54) If workers leave a country to seek out better opportunities in another country, then this will

A) shift the short-run aggregate supply curve of the original country to the left.

B) shift the short-run aggregate supply curve of the original country to the right.

C) move the original economy up along a stationary short-run aggregate supply curve.

D) move the original economy down along a stationary short-run aggregate supply curve.

 

55) The invention of the integrated circuit by Jack Kilby of Texas Instruments gave rise to the information age. What did this technological change do the short-run supply curve?

A) It shifted the short-run aggregate supply curve to the left.

B) It shifted the short-run aggregate supply curve to the right.

C) It moved the economy up along a stationary short-run aggregate supply curve.

D) It moved the economy down along a stationary short-run aggregate supply curve.

 

56) Hurricane Katrina destroyed oil and natural gas refining capacity in the Gulf of Mexico. This subsequently drove up natural gas, gasoline, and heating oil prices. As a result, this should

A) shift the short-run aggregate supply curve to the left.

B) shift the short-run aggregate supply curve to the right.

C) move the economy up along a stationary short-run aggregate supply curve.

D) move the economy down along a stationary short-run aggregate supply curve.

 

57) When the price level falls from 135 to 120, the aggregate level of GDP supplied falls from $140 billion to $125 billion. This ________ relationship represents the ________ relationship between GDP and the price level.

A) negative; short-run

B) positive; short-run

C) negative; long-run

D) positive; long-run

 

58) If potential GDP is equal to $600 billion, what does the long-run aggregate supply curve look like?

A) It is a horizontal line at $600 billion of GDP.

B) It is a vertical line at a level of GDP below $600 billion.

C) It is a vertical line at $600 billion of GDP.

D) It is a vertical line at a level of GDP above $600 billion.

 

59) Workers expect inflation to fall from 4% to 1% next year. As a result, this should

A) shift the short-run aggregate supply curve to the left.

B) shift the short-run aggregate supply curve to the right.

C) move the economy up along a stationary short-run aggregate supply curve.

D) move the economy down along a stationary short-run aggregate supply curve.

 

60) Workers and firms both expect that prices will be 3% higher next year than they are this year. As a result

A) workers will be willing to take lower wages next year.

B) the purchasing power of wages will rise if wages increase by 3%.

C) the short-run aggregate supply curve will shift to the left as wages increase.

D) aggregate demand will increase by 3%

 

 

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