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Previousedition,Chapter10
AACSB:
ReflectiveThinking
41)Movingalongashort-runaggregatesupplycurve,resourceprices
themoneyratewage,andpotentialGDP
A)donotchange;
changes;
doesnotchange
B)donotchange;
doesnotchange;
changes
C)change;
D)donotchange;
Conceptual
Previousedition.Chapter10
42)Adecreaseinthepricelevelaccompaniedbynochangeinthemoney
wagerateleadstomovementalongtheaggregatesupply
curve.
A)adownward;
short-run
B)anupward;
C)adownward;
Iong-run
D)anupward;
A
43)TheSAScurveandtheLAScurve
A)intersectatpotentialGDP.
B)areparallelatpotentialGDP.
C)areperpendiculartooneanotheratpotentialGDP.
D)Noneoftheaboveanswersiscorrect.
TheLASandSASCurves
Recognition
44)Supposethepricelevel,themoneywage,andthepriceofallotherresourcesriseby10percent.Thissetofchangesleadsto
A)anupwardmovementalongtheLAScurve.
B)adownwardmovementalongtheLAScurve.
C)anupwardmovementalongtheSAScurve.
D)aleftwardshiftoftheLAScurve.
MovementsAlongtheLASandSASCurves
45)Supposethepricelevelrisesandthemoneywageremainsconstant.
Thissetofchangesleadsto
B)anupwardmovementalongtheSAScurve.
C)aleftwardshiftoftheSAScurve.
D)aleftwardshiftoftheSAScurveandtheLAScurve.
B
46)Whichofthefollowingstatementsregardingaggregatesupplyarecorrect?
A)Movingalongthelong-runaggregatesupplycurve,boththepricelevelandthemoneywageratechangebythesamepercentage.
B)Movingalongtheshort-runaggregatesupplycurve,boththepricelevelandthemoneywageratechangebythesamepercentage.
C)Movingalongthelong-runaggregatesupplycurve,themoneywageratechangesbutthepricelevelisconstant.
D)Movingalongtheshort-runaggregatesupplycurve,themoneywageratechangesbutthepricelevelisconstant.
0____13013.5__bto__143
RealGDP(trillionsof2005dollars)
47)Inthefigureabove,potentialGDPequals
A)$12.5trillion.
B)$13.0trillion.
C)$13.5trillion.
Long-RunAggregateSupply
Analytical
Modified10thedition
AnalyticalSkills
48)
Awhenthepricelevel
Inthefigureabove,theeconomyisatpointrisesto120.Moneywageratesandotherresourcepricesremainconstant.
Firmsarewillingtosupplyoutputequalto
C
Short-RunAggregateSupply
49)Inthefigureabove,theeconomyisatpointAwhenthepricelevel
fallsto100.Moneywageratesandallotherresourcepricesremainconstant.Firmsarewillingtosupplyoutputequalto
0073电Pdcjole一ss
50)Intheabovefigure,theeconomywillbeatfullemploymentifthepricelevel
A)is110.
B)isabove110.
C)isbelow100.
D)Alloftheabovearepossiblebecausetheeconomywillbeatfull
employmentatanypricelevelat,above,orbelow110.
Short-RunandLong-RunAggregateSupply
MS
51)Intheabovefigure,whichmovementllustratestheimpactofafalling
pricelevelandaconstantmoneywagerate?
A)EtoI
B)EtoF
C)EtoJ
D)EtoH
52)Intheabovefigure,whichmovementillustratestheimpactofarising
A)EtoI
C)EtoG
D)EtoK
53)Intheabovefigure,whichmovementllustratestheimpactofthepricelevelandmoneywageratefallingatthesamerate?
A)EtoH
B)EtoK
D)EtoG
54)Intheabovefigure,whichmovementillustratestheimpactofaconstantpricelevelandarisingmoneywagerate?
55)Whichofthefollowingeventswillincreaseshort-runaggregatesupply?
A)anadvaneeintechnology
B)anincreaseinresourceprices
C)anincreaseinthenaturalunemploymentrate
D)anincreaseinforeignincome
ChangesinShort-RunAggregateSupply
56)Theshort-runaggregatesupplycurveshiftswhen
i.thefull-employmentquantityofcapitalchanges.
ii.technologyadvances.
A)ionly
B)iionly
C)neitherinorii
D)iandii
57)TheSAScurveshiftsifthereisachangein
A)thepricelevel.
B)realGDP.
C)nominalGDP.
D)potentialGDP.
58)WhichofthefollowingchangesdoesNOTshifttheshort-runaggregate
supplycurve?
A)anincreaseinthepricelevel
B)anincreaseintechnology
C)anincreaseinthequantityofcapital
D)anincreaseinthemoneywagerate
59)WhichofthefollowingchangesdoesNOTshiftthelong-runaggregatesupplycurve?
A)adecreaseinthelaborforce
B)afallinthepricelevel
C)ariseinnumberofcollegegraduatesinthelaborforce
D)ataxhikethatreducesthecapitalstock
60)AllofthefollowingshifttheLAScurveEXCEPT
A)achangeinthecapitalstock.
B)anincreaseinthemoneywagerate.
C)anincreaseinthestockofhumancapital.
D)technologicalprogress.
ChangesinLong-RunAggregateSupply
61)Allofthefollowingshifttheshort-runaggregatesupplycurveEXCEPT
A)achangeinthepricelevel.
B)achangeinthemoneywagerate.
C)achangeinthepriceofarawmaterial.
62)Whichofthefollowingdirectlyshiftstheshort-runaggregatesupply
curve?
A)achangeinaggregatedemand
B)achangeinthepricelevel
C)achangeinresourceprices
D)alloftheabove
63)Whichofthefollowingshiftstheshort-runaggregatesupplycurve?
I.changesinthesizeofthelaborforce
II.changesinthemoneywagerate
A)Ionly
B)IIonly
C)bothIandII
D)neitherInorII