#1
Which of the following is a determinant of short-run aggregate supply?
Changes in the price level
Changes in technology
Changes in the money supply
Changes in government spending
#2
In the long run, the aggregate supply curve is primarily determined by:
Changes in resource prices
Changes in technology
Changes in aggregate demand
Changes in the money supply
#3
Which of the following best describes the slope of the short-run aggregate supply curve?
Positive
Vertical
Negative
Horizontal
#4
What is the relationship between the price level and the quantity of real GDP supplied in the long run?
There is a direct relationship
There is an inverse relationship
There is no relationship
The relationship is unpredictable
#5
What is the shape of the short-run aggregate supply curve?
Vertical
Horizontal
Upward-sloping
Downward-sloping
#6
Which of the following is a determinant of long-run aggregate supply?
Changes in the price level
Changes in technology
Changes in government spending
Changes in interest rates
#7
What does a movement along the aggregate supply curve indicate?
A change in price level
A change in real GDP
A change in aggregate demand
A change in technology
#8
What happens to aggregate supply in the short run when there is a decrease in aggregate demand?
It shifts to the right
It shifts to the left
It remains unchanged
It becomes vertical
#9
Which of the following is a component of potential output?
Frictional unemployment
Cyclical unemployment
Structural unemployment
Full employment level of output
#10
What does the long-run aggregate supply curve represent?
The relationship between price level and real GDP in the long run
The relationship between price level and real GDP in the short run
The relationship between potential output and employment
The relationship between aggregate demand and aggregate supply
#11
What happens to short-run aggregate supply if there is an increase in production costs?
It shifts to the left
It shifts to the right
There is movement along the curve
Aggregate supply remains unaffected
#12
Which of the following is a factor that can lead to an upward shift in the long-run aggregate supply curve?
An increase in resource prices
A decrease in technology
An increase in the size of the labor force
A decrease in capital stock
#13
What is the Keynesian perspective on the long-run aggregate supply curve?
It is vertical at the full employment level of output
It is horizontal at the full employment level of output
It is upward sloping
It is downward sloping
#14
How does a recessionary gap affect the aggregate supply curve in the short run?
It shifts the curve to the left
It shifts the curve to the right
It causes movement along the curve
It has no effect on the curve
#15
What does a shift of the aggregate supply curve to the right indicate?
An increase in potential output
A decrease in potential output
A decrease in the price level
An increase in the price level
#16
What is the primary reason for the slope of the long-run aggregate supply curve?
Changes in resource prices
Changes in technology
Changes in consumer preferences
Changes in government policies
#17
Which of the following would lead to a rightward shift of the short-run aggregate supply curve?
An increase in input prices
A decrease in business taxes
A decrease in consumer spending
A decrease in government spending
#18
What effect does technological advancement have on the long-run aggregate supply curve?
Shifts it leftward
Shifts it rightward
Causes it to become vertical
Causes it to become horizontal
#19
Which of the following is a reason for the existence of a short-run aggregate supply curve?
Resource scarcity
Price stickiness
Flexible wages
Perfect competition
#20
What happens to the long-run aggregate supply curve if there is an increase in the size of the labor force?
It shifts to the right
It shifts to the left
It becomes steeper
It becomes flatter
#21
What is a supply shock in the context of aggregate supply analysis?
A sudden increase in aggregate demand
A sudden decrease in the price level
A sudden change in resource prices or technology
A sudden change in government spending
#22
Which of the following is a reason why the long-run aggregate supply curve might shift to the left?
A decrease in the price level
An increase in technology
An increase in labor productivity
A decrease in the size of the labor force
#23
What is the difference between the short-run and long-run aggregate supply curves?
The short-run curve is vertical, and the long-run curve is horizontal
The short-run curve is horizontal, and the long-run curve is vertical
Both curves are vertical
Both curves are horizontal
#24
What is the relationship between inflation and the short-run aggregate supply curve?
There is a positive relationship
There is a negative relationship
There is no relationship
The relationship is inverse
#25
What is the impact of a decrease in business taxes on the long-run aggregate supply curve?
It shifts it leftward
It shifts it rightward
It has no effect
It makes it vertical