Short-Run Aggregate Supply (SRAS)

Question 1

In the short run, movement along the SRAS curve____ corresponds to ______ in the unemployment rate, all else being equal.

Aleft to right; an increase

Bleft to right; a decrease

Cleft to right; an indeterminate change

Dright to left; an indeterminate change

Eright to left; a decrease

Question 2

An increase in the price level corresponds to

Aa decrease in aggregate demand

Ban increase in aggregate supply

Cmovement along the aggregate supply curve

Dan inflationary gap

Ea recessionary gap

Question 3

If the labor force participation rate increases, which of the following would happen to short-run aggregate supply?

AA shift of the AD curve to the left

BMovement left and down along the SRAS curve

CMovement right and up along the SRAS curve

DA shift of the SRAS curve to the left

EA shift of the SRAS curve to the right

Question 4

A decrease in energy prices in the short run generally

Adecreases real output

Bincreases nominal output but not real output

Cincreases real output

Dcorresponds to an increase in the unemployment rate

Ehas no impact on either nominal or real output

Question 5

Which of the following would correspond to a decrease in real output due to an increase in energy prices?

AA shift of the aggregate demand curve to the left

BMovement left and down along the short-run aggregate supply curve

CMovement right and up along the short-run aggregate supply curve

DA shift of the short-run aggregate supply curve to the left

EA shift of the short-run aggregate supply curve to the right