Question
Hi, just stuck with answering a few of these questions. Thanks! Q3. An increase in expectations would cause the aggregate supply to ___ in the
Hi, just stuck with answering a few of these questions. Thanks!
Q3. An increase in expectations would cause the aggregate supply to ___ in the short run.
a. fall
b. increase
c. fluctuate
d. keep constant
Q4. When factors (other than price level) that affect the quantity of goods and services supplied change:
a. the aggregate-supply curve becomes horizontal
b. the aggregate-supply curve is not affected
c. the aggregate-supply curve shifts
d. the aggregate supply becomes vertical
Q6. If people's expectations about future price levels change:
a. the short run aggregate supply curve becomes vertical
b. the short run aggregate supply curve shifts
c. the short run aggregate supply curve is not affected
d. the short-run aggregate-supply curve becomes horizontal
Q7. If resources become more productive:
a. both the short-run and the long-run aggregate-supply curves shift
b. neither the short-run aggregate curve nor the long-run supply curve shifts
c. the short-run aggregate-supply curve is not affected but the long-run aggregate curve shifts
d. the aggregate-demand curve shifts
Q11. Which of the following statements about aggregate demand is correct?
a. In the short run, shifts in aggregate demand do not affect the overall price level and output
b. In the short run, shifts in aggregate demand affect the overall price level but do not affect output
c. In the long run, shifts in aggregate demand affect the overall price level but do not affect output
d. In the long run, shifts in aggregate demand cause fluctuations in output
Q12. The exchange rate effect implies that a currency depreciation:
a. increases net exports
b. decreases net exports
c. does not change net exports
and:
a. increases the quantity of goods and services demanded
b. decreases the quantity of goods and services demanded
c. does not change the quantity of goods and services demanded
Q14. If there is an increase in both the price level and employment, which of the following could possibly explain this?
a. An increase in government expenditure
b. a decrease in the domestic currency
c. all the options are correct
d. interest rate fall
Q15. When each firm is producing at capacity and there is full employment, this shows:
a. all of the options
b. the long run AS curve
c. an inflationary gap
d. a deflationary gap
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