WorksheetsECON1022 - Chapter 10
Total questions: 5
Worksheet time: 3mins
If the price level rises and the money wage rate remains constant, the quantity of real GDP supplied ________ and there is a movement along the _______ aggregate supply curve.
increases; short-run
increases; long-run
does not change; short-run
does not change; long-run
Which of the following statements illustrate fiscal policy?
The Bank of Canada has increased its reserve requirement.
The Government of Canada has proposed a hike in the corporate tax rate.
A stronger dollar has lowered Canadian exports.
A rise in the expected future profits has increased Canadian investments.
Which of the following economies is facing a stagflation?
The European economy is experiencing a decrease in real GDP for three quarters and a rise in the price level
The Chinese economy is facing a rising labour cost.
The Bank of Canada is purchasing government securities to lower the interest rate.
Toyota and Honda build additional plants in Canada. This event ________short-run aggregate supply and _______ long-run aggregate supply.
increase; does not change
does not change; does not change
does not change; increases
increases; increases
Long-run aggregate supply is the relationship between the quantity of real GDP supplied and the price level when real GDP equals potential GDP
TRUE
FALSE
