1. Aggregate supply denitions The short-run aggregate supply curve shows: O The relaonship between the price level and aggregate expenditure C} What happens to output in an economy when the government spends more money C} What happens to output in an economy as the actual price level changes. holding all other determinants of real GDP constant Q How rms respond to changes in interest rates Which of the following are assumed to remain unchanged along a given short-run aggregate supply curve? Check all! that apply. C] The price level C] Instutions, such as patent laws and tax systems, that make up the "rules of the game" C] The technologyr available to lms C] The position of the aggregate demand curve The tenn potential output refers to: O The maximum possible output for an economyr O The quantity of output that would be produced if everyr member of the labor force worked 40 hours per week 0 The quantity of output produced at the intersecljon of the AD and AS curves 0 The quantity of output produced when the price level is the same as firms and workers expected when theiir agreed on input prices and wages Compiete the foiiowing table by matching each denition to the appropriate economic time frame. Denition Short Run Long Run A period of time in which some input prices and wages are xed 0 Q A period of time long enough for all input prices and wages to be renegotiated C) O