9. Some economists theorize that when the price level increases, firms will increase production because wages do not rise as quickly as output prices. The implication of this theory, known as ___ theory, is an upward-sloping short-run aggregate supply curve. (A) sticky wage (B) misperceptions (C) sticky output (D) sticky interest rates (E) crowding out

10. Which of the following theories are used to explain the upward-sloping short-run aggregate supply curve? I. Rational expectations theory II. Sticky wage theory III. Diminishing marginal utility (A) I only (B) II only (C) III only (D) I and II only (E) II and III only

11. Suppose that energy prices increase across the economy. How will this affect the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve? SRAS;LRAS (A) Decreases; No change (B) Decreases; Decreases (C) No change; No change (D) Increases; Decreases (E) Decreases; Increases

12. Suppose that the prices of key manufacturing commodities (i.e. steel,copper, aluminum) decrease across the economy. How will this affect the short-run aggregate supply curve (SRAS) and the long-run aggregate supply (LRAS) curve? SRAS; LRAS (A) Decreases; Increases (B) Increases; Decreases (C) No change; No change (D) Increases; No change (E) Increases; Increases

13. Texomabourg is a small island nation. Suppose that producers in Texomabourg experience a permanent increase in labor productivity. How will this affect the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve? SRAS; LRAS (A) Decreases; Increases (B) Increases; Decreases (C) No change; No change (D) Increases; No change

(E) Increases; Increases