WorksheetsEconomics 11 Q2 - AS
Total questions: 10
Worksheet time: 10mins
The short-run aggregate supply (SRAS) curve slopes upward because:
Wages and input prices are flexible in the short run
Firms produce more as the price level rises due to fixed costs in the short run
Technology improves in the short run
Firms have unlimited capacity in the short run
Which of the following could cause a shift of the SRAS curve to the right?
An increase in raw material prices
An improvement in technology
An increase in wages
Higher business taxes
Which of the following is a determinant of short-run aggregate supply?
Consumer confidence
Productivity of labor
Interest rates
Consumer spending
What is the impact of a reduction in labor productivity on the SRAS curve?
A rightward shift
A leftward shift
No impact on SRAS
A movement along the SRAS curve
In the long run, the new classical LRAS curve is:
Upward sloping
Vertical
Horizontal
Shaped like the SRAS curve
Which of the following would cause a rightward shift in the LRAS curve?
A decrease in wages
An increase in productivity
An increase in taxes
An increase in the price level
Keynesian economists believe that the AS curve:
Is always vertical
Slopes upwards and becomes perfectly elastic at low levels of output
Is perfectly inelastic in the long run
Has no relation to the level of unemployment
What causes a movement along the SRAS curve?
A change in the price level
A change in productivity
A change in technology
A change in wages
Which of the following would cause the LRAS curve to shift to the right?
A decrease in capital stock
A decrease in labor force participation
An increase in infrastructure investment
A decrease in investment
In the Keynesian model, an increase in aggregate demand will lead to:
A rise in the price level only if the economy is near full employment
A rightward shift in the SRAS curve
A fall in the price level if the economy is below full employment
A leftward shift in the LRAS curve
