Question : 11) The aggregate supply curve shows the relationship between A) potential : 1240537

11) The aggregate supply curve shows the relationship between

A) potential GDP and the price level.

B) potential GDP and real GDP.

C) the quantity of real GDP supplied and the price level.

D) the quantity of real GDP supplied and the interest rate.

E) potential GDP and the aggregate demand curve.

12) The slope of the aggregate supply curve shows that, all else the same, the

A) quantity of real GDP supplied increases as the price level increases.

B) quantity of real GDP supplied decreases as the price level increases.

C) quantity of real GDP supplied remains constant as the price level increases.

D) price level remains constant as real GDP increases.

E) price level remains constant as potential GDP increases.

13) Other things remaining the same, an increase in the price level

A) increases aggregate supply.

B) decreases aggregate supply.

C) increases the quantity of real GDP supplied.

D) decreases the quantity of real GDP supplied.

E) neither changes aggregate supply nor changes the quantity of real GDP supplied.

14) Moving along the AS curve, when the price level increases, the

A) real wage rate falls, and there is an increase in the quantity of real GDP supplied.

B) real wage rate rises, and there is an increase in the quantity of real GDP supplied.

C) nominal wage rate falls, and there is an increase in the quantity of real GDP supplied.

D) nominal wage rate rises, and there is a decrease in the quantity of real GDP supplied.

E) real wage rate rises, and there is a decrease in the quantity of real GDP supplied.

15) Moving along the aggregate supply curve, when the price level rises,

A) the quantity supplied does not change because the aggregate supply curve is a vertical line.

B) the quantity supplied increases.

C) the quantity supplied decreases.

D) the aggregate demand curve shifts rightward.

E) the aggregate demand curve shifts leftward.

16) An increase in the price level leads to

A) an upward movement along the aggregate supply curve.

B) a downward movement along the aggregate supply curve.

C) a leftward shift of the aggregate supply curve.

D) a rightward shift of the aggregate supply curve.

E) neither a movement along the aggregate supply curve nor a shift of the aggregate supply curve.

17) The ________, the ________ is the quantity of real GDP supplied.

A) lower the price level; greater

B) higher the price level; greater

C) greater the demand for labor; smaller

D) lower the supply of labor; greater

E) lower aggregate demand; greater

18) The slope of the aggregate supply curve shows that the ________ the price level, the ________.

A) higher; greater is the quantity of real GDP supplied

B) higher; smaller is the quantity of real GDP supplied

C) lower; greater is the quantity of real GDP supplied

D) higher; is the quantity of potential GDP supplied

E) lower; is the quantity of potential GDP supplied

19) ________ increases the quantity of real GDP supplied and is shown as a movement along the AS curve.

A) A decrease in the quantity of money

B) A decrease in consumption expenditure

C) A fall in the expected rate of profit

D) A rise in the price level

E) An increase in potential GDP

20) The aggregate supply curve illustrates that the

A) higher the price level, the greater the quantity of real GDP supplied.

B) higher the price level, the smaller the quantity of real GDP supplied.

C) aggregate demand curve is not needed to determine the aggregate price level.

D) price level does not affect the quantity of real GDP supplied.

E) amount of potential GDP increases when the price level rises.