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Aggregate Supply - Practice Quiz

Created by

Zachary Foust
Zachary Foust
United States

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Module 18
 

Module 18Online version

Aggregate Supply - Practice Quiz

by Zachary Foust
1

Which of the following best explains why the short-run aggregate supply curve slopes upward?

2

Which of the following best explains why the long-run aggregate supply curve is vertical?

3

Which of the following is represented by the long-run aggregate supply curve?

4

Assume that the economy starts at the full employment level of output. Then, the government pays for the construction of physical capital such as roads, bridges, and dams. Will the increase in the amount of physical capital cause long-run aggregate supply to increase, decrease, or remain unchanged?

5

Assume that the economy starts at the full employment level of output. Then, the price level rises from 100 to 120. In the long-run, will real GDP supplied increase, decrease, or remain unchanged?

6

Assume that the economy starts at the full employment level of output. Then, the price level rises from 100 to 120. In the short-run, will real GDP supplied increase, decrease, or remain unchanged?

7

Assume that the economy starts at the full employment level of output. Then, the price of oil increases. Will short-run aggregate supply increase, decrease, or remain unchanged?

8

Assume that the economy starts at the full employment level of output. Then, productivity increases. Will short-run aggregate supply increase, decrease, or remain unchanged?

9

Assume that the economy starts at the full employment level of output. Then, nominal wages increase. Will short-run aggregate supply increase, decrease, or remain unchanged?

10

Assume that the economy starts at the full employment level of output. Then, the expected rate of inflation increases. Will short-run aggregate supply increase, decrease, or remain unchanged?

 
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