Unit 3 AD/AS

An advance in technology will cause the

• AD curve shift to the right

• AD curve shift to the left

• SRAS curve shift to the left

• LRAS curve shift to the left

• LRAS curve shift to the right

An increase in which of the following would cause the aggregate demand curve to shift to the left?

• Consumer optimism

• Income taxes

• Cost of resources

• Population

• Net exports

Which of the following will shift the SRAS? A change in

• profit per unit at any given price

• commodity prices

• nominal wages

• productivity

• all of the above

If countries that imported from the US went into recession, U.S. net exports would

• rise, making aggregate demand shift right.

• rise, making aggregate demand shift left.

• fall, making aggregate demand shift right.

• fall, making aggregate demand shift left.

Which of the following would cause the short-run aggregate supply curve to shift to the right?

• An increase in the wage rate

• An increase in the interest rate

• An increase in the natural rate of unemployment

• A decrease in the capital stock

• A decrease in the expected price level

In order to remember the factors that shift SRAS you should think of

• LIME

• RAP

• TRAP

• STRAW

What does the abbreviation above stand for? ( list the factors in order)

The shifters of aggregate supply are

• change in resource prices

• inflationary expectations

• changes in actions of the government

• changes in productivity

Shifters of the aggregate demand include

• change in government spending

• change in investment spending

• change in consumer spending

• change in net exports

Changes in the price level

• shift AS curve to the right

• move along the AD curve

• shift the AD curve left

• shift the AS curve left

• shift the AD curve right