#1
Which of the following is a determinant of short-run aggregate supply?
Changes in the price level
ExplanationPrice level changes impact short-run supply.
#2
In the long run, the aggregate supply curve is primarily determined by:
Changes in technology
ExplanationTechnological changes shape the long-run curve.
#3
Which of the following best describes the slope of the short-run aggregate supply curve?
Positive
ExplanationShort-run curve slopes upward.
#4
What is the relationship between the price level and the quantity of real GDP supplied in the long run?
There is no relationship
ExplanationNo price-GDP relationship in the long run.
#5
What is the shape of the short-run aggregate supply curve?
Upward-sloping
ExplanationShort-run curve slopes upward.
#6
Which of the following is a determinant of long-run aggregate supply?
Changes in technology
ExplanationTechnology changes drive long-run supply.
#7
What happens to short-run aggregate supply if there is an increase in production costs?
It shifts to the left
ExplanationIncreased costs shift short-run supply left.
#8
Which of the following is a factor that can lead to an upward shift in the long-run aggregate supply curve?
An increase in the size of the labor force
ExplanationLabor force growth shifts long-run supply up.
#9
What is the Keynesian perspective on the long-run aggregate supply curve?
It is vertical at the full employment level of output
ExplanationKeynesians see long-run curve as vertical.
#10
How does a recessionary gap affect the aggregate supply curve in the short run?
It shifts the curve to the left
ExplanationRecessionary gap shifts short-run supply left.
#11
What does a shift of the aggregate supply curve to the right indicate?
An increase in potential output
ExplanationRightward shift indicates higher potential output.
#12
What is the primary reason for the slope of the long-run aggregate supply curve?
Changes in technology
ExplanationTechnological changes drive long-run slope.
#13
What is a supply shock in the context of aggregate supply analysis?
A sudden change in resource prices or technology
ExplanationRapid resource/tech change is a supply shock.
#14
Which of the following is a reason why the long-run aggregate supply curve might shift to the left?
A decrease in the size of the labor force
ExplanationLabor force shrinkage shifts long-run supply left.
#15
What is the difference between the short-run and long-run aggregate supply curves?
The short-run curve is horizontal, and the long-run curve is vertical
ExplanationShort-run is horizontal, long-run is vertical.
#16
What is the relationship between inflation and the short-run aggregate supply curve?
There is a positive relationship
ExplanationInflation and short-run supply have a positive link.
#17
What is the impact of a decrease in business taxes on the long-run aggregate supply curve?
It shifts it rightward
ExplanationLower business taxes shift long-run supply right.