Question
26 Which of the following accurately contrasts short-run and long-run equilibrium? a. In short-run equilibrium, the aggregate demand curve intersects the long-run aggregate supply curve;
26
Which of the following accurately contrasts short-run and long-run equilibrium?
a.
In short-run equilibrium, the aggregate demand curve intersects the long-run aggregate supply curve; in long-run equilibrium, the aggregate demand curve intersects the short-run aggregate supply curve
b.
In short-run equilibrium, the aggregate demand curve intersects the short-run aggregate supply curve; in the long-run equilibrium, the aggregate demand curve intersects the long-run aggregate supply curve
c.
In short-run equilibrium, the aggregate demand curve intersects the short-run aggregate supply curve; in the long-run equilibrium, the aggregate demand curve intersects the long-run aggregate expenditures curve
d.
In short-run equilibrium, the aggregate demand curve intersects the short-run aggregate supply curve; in long-run equilibrium, the aggregate demand curve intersects both the short-run and the long-run aggregate supply curves
29
The term "natural level of unemployment" means that the real GDP is at a level for which there is:
a.
no cyclical unemployment and the long-run aggregate supply curve is vertical
b.
no cyclical unemployment and the short-run aggregate supply curve is vertical
c.
no frictional unemployment and the long-run aggregate supply curve is vertical
d.
no structural unemployment and the long-run aggregate supply curve is vertical
30
Which of the following statements is true with respect to the beliefs of the different schools of thought about the shape of the aggregate supply curve?
a.
Classical economists believe that the aggregate supply curve is upward sloping, therefore, an increase in aggregate demand increases both the price level and real GDP
b.
Classical economists believe that the aggregate supply curve is vertical, therefore, an increase in aggregate demand only causes an increase in inflation and no change in real GDP
c.
Keynesian economists believe that the aggregate supply curve is horizontal, therefore, an increase in aggregate demand only causes an increase in inflation and no change in real GDP
d.
Keynesian economists believe that the aggregate supply curve is upward sloping, therefore, an increase in aggregate demand increases both the price level and real GDP
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Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408076866
