Which of the following will cause a rightward shift of the short-run aggregate supply curve?
A.
An increase in consumption spending
B.
An increase in nominal wages
C.
An increase in income taxes
D.
A decrease in the costs of production
2.
Which of the following will most likely cause the short-run aggregate supply curve to shift to the left?
A.
A decrease in nominal wages
B.
A decrease in the expected rate of inflation
C.
An increase in energy prices
D.
An increase in the price level
3.
The diagram shows two points on the short-run aggregate supply curve. The movement from point g to point h is best described as which of the following?
A.
A decrease in full employment output
B.
A decrease in aggregate demand
C.
An increase in real output due to an increase in the price level
D.
An increase in real output due to technological change
4.
Nominal wages are an important cost of production. Which of the following best describes the effect of an increase in nominal wages?
A.
Short-run aggregate supply will increase.
B.
Short-run aggregate supply will decrease.
C.
Aggregate demand will increase.
D.
Aggregate demand will decrease.
5.
How will an increase in the expected rate of inflation affect nominal wages, per unit production cost, and short-run aggregate supply?
A.
Nominal wages will increase, per unit production cost will increase, and short-run aggregate supply will decrease.
B.
Nominal wages will decrease, per unit production cost will decrease, and short-run aggregate supply will increase.
C.
Nominal wages will increase, per unit production cost will decrease, and short-run aggregate supply will decrease.
D.
Nominal wages will increase, per unit production cost will increase, and short-run aggregate supply will increase.
