economics

Which of the following will shift the short-run aggregate supply curve? A change in

• profit per unit at any given price level

• commodity prices

• nominal wages

• productivity

• all of the above

Because changes in the aggregate price level have no effect on aggregate output in the long run, the aggregate supply curve is?

• vertical

• horizontal

• fixed

• negatively sloped

• positively sloped

The horizontal intercept of the long-run aggregate supply curve is?

• at the origin

• negative

• at potential output

• equal to the vertical intercept

• always the same as the horizontal intercept of the short-run aggregate supply curve

a decrease in which of the following will cause the short-run aggregate supply curve to shift to the left?

• commodity prices

• the cost of health care insurance premiums paid by employers

• nominal wages

• productivity

• the use of cost of living allowances in labor contracts

That employers are reluctant to decrease nominal wages during economic downturns and raise nominal wages during economic expansions leads nominal wages to be described as

• long-run

• unyeilding

• flexible

• real

• sticky

which of the following causes a negative supply shock?

• a technological advance

• increasing productivity

• an increase in oil prices

• all of the above

which of the following causes a positive demand shock?

• an increase in wealth

• pessimistic consumer expectations

• a decrease in government spending

• an increase in taxes

• an increase in the existing stock of capital

During stagflation, what happens to the aggregate price level and real GDP?

APL RGP

• decreases, increases

• decreases, decreases

• increases, increases

• increases, decreases

• stays the same, stays the same

Which of the following contributes to the lag in implementing fiscal policy?

• it takes time for Congress and the President to pass spending and tax changes

• Current economic data take time to collect and analyze

• it takes time to realize an output gap exists

• all of the above

Which of the following is a government transfer program?

• Social Security

• Medicare/Medicaid

• unemployment insurance

• food stamps

• all of the above