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1. Aggregate supply definitions The short-run aggregate supply curve shows: o What happens to output in an economy when the government spends more money o Changes in output in an economy as the price level changes, holding all other determinants of real GDP constant o How firms respond to changes in interest rates o The relationship between the price level and aggregate expenditure Which of the following are assumed to remain unchanged along a given short-run aggregate supply curve? Check all that apply. The technology available to firms Institutions, such as patent laws and tax systems, that make up the "rules of the game" Real GDP n Input prices The term full-employment unemployment rate refers to: o The unemployment rate that occurs when an economy's real GDP is equal to its potential output o The unemployment rate that would occur if there were no frictional unemployment The minimum possible unemployment rate for an economy o The unemployment that arises due to purely seasonal factors, such as unemployed lifeguards in the winter Complete the following table by matching each definition to the appropriate economic time frame. Short Long Definition Run Run A period of time in which some input prices and wages are fixed A period of time long enough for all input prices and wages to be renegotiated O O