Question

Question 11 pts The aggregate supply curve is vertical in the short run. slopes downward because...

Question 11 pts

The aggregate supply curve

is vertical in the short run.
slopes downward because of sticky wages and prices.
is vertical in the long run.
slopes downward largely because of the trade effect and wealth effect.

Flag this Question

Question 21 pts

The aggregate supply curve

is vertical in the short run.
slopes downward because of sticky wages and prices.
is vertical in the long run.
slopes downward largely because of the trade effect and wealth effect.

Flag this Question

Question 31 pts

The best example of a leftward shift in AS to occur in the modern U.S. economy occurred in:

1960s
1970s
1980s
1990s

Flag this Question

Question 41 pts

The traditional Phillips curve derives its shape from the:

short run aggregate supply curve.
short run fluctuations in aggregate supply.
long run aggregate supply curve.
long run fluctuations in aggregate supply.

Flag this Question

Question 51 pts

Which is NOT a reason that an aggregate supply curve might slope upward to the right?

As production increases, people want to buy less.
As production increases, wages are bid up.
As production increases, interest rates rise.
As output prices rise, producers expand output.

Homework Answers

Answer #1

11) The aggregate supply curve is is vertical in the long run due to full employment of resources.

31) The best example of a leftward shift in AS to occur in the modern U.S. economy occurred in: 1970s due to the oil price shock.

41) The traditional Phillips curve derives its shape from the Short run fluctuations in aggregate supply. It showed changes in the level of unemployment have a direct and inverse effect on the level of price inflation.

51) The reason that an aggregate supply curve might slope upward to the right is as production increases, people want to buy less. People's willingness to buy less is a demand side factor and not supply.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Explain why the SAS (short-run aggregate supply) curve slopes upward and the LAS (long-run aggregate supply)...
Explain why the SAS (short-run aggregate supply) curve slopes upward and the LAS (long-run aggregate supply) curve is vertical
QUESTION 64 The sticky-wage theory of the short-run aggregate supply curve says that when the price...
QUESTION 64 The sticky-wage theory of the short-run aggregate supply curve says that when the price level rises more than expected, a. production is less profitable and employment falls. b. production is less profitable and employment rises. c. production is more profitable and employment rises. d. production is more profitable and employment falls. 1 points    QUESTION 65 Other things the same, if technology increases, then in the long run a. both output and prices are lower. b. both output...
Explain why the aggregate supply (AS) curve slopes upward in the short-run. Explain how the concept...
Explain why the aggregate supply (AS) curve slopes upward in the short-run. Explain how the concept of “full employment” is related to a vertical AS curve in the long-run.
As the level of real GDP increases, the short-run aggregate supply curve: a. shifts to the...
As the level of real GDP increases, the short-run aggregate supply curve: a. shifts to the right. b. shifts to the left. c. becomes flatter. d. becomes steeper. e. becomes horizontal to the real GDP axis. Firms' profits or production do not increase in the long run because: a. some factors of production are fixed in the long run. b. all the factors of production are variable in the long run. c. changes in factor costs completely offset any change...
Which of the following statements is TRUE? The aggregate demand curve slopes downward because at a...
Which of the following statements is TRUE? The aggregate demand curve slopes downward because at a higher price level: the purchasing power of consumers' wealth declines and consumption decreases. producers can get more for what they produce, and they increase production. the purchasing power of consumers' wealth declines and consumption increases. the purchasing power of consumers' wealth increases and consumption increases.
If all prices are stuck at a predetermined level, then when a short-run aggregate supply curve...
If all prices are stuck at a predetermined level, then when a short-run aggregate supply curve is drawn with real GDP (Y) along the horizontal axis and the price level (P) along the vertical axis, this curve: a) is vertical. b) is horizontal. c) slopes downward and to the right. d) slopes upward and to the right.
The AS ( Aggregate Supply) curve slopes upwards because? a- Wages are sticky b- as the...
The AS ( Aggregate Supply) curve slopes upwards because? a- Wages are sticky b- as the price level rises the fed raises the interest rate
Assume that the long-run aggregate supply curve is vertical at Y = 3,000 while the short-run...
Assume that the long-run aggregate supply curve is vertical at Y = 3,000 while the short-run aggregate supply curve is horizontal at P = 1.0. Suppose that the country experiences an important crop failure due to severe tornadoes. What will be the immediate impact following the shock? Select one: a. the short-run aggregate supply curve shifts up, the price level rises, and output falls. b. the price level falls, output falls, and the short-run aggregate supply curve shifts down. c....
3 Part Question Part 1 The short run aggregate supply is viewed as upward sloping: a....
3 Part Question Part 1 The short run aggregate supply is viewed as upward sloping: a. showing that higher prices will lead to higher production. b. because it takes a while for wages to rise when prices rise. c. because it takes a while for wages to fall when prices fall. d. in part, because of money illusion. e. All of the above. Part 2 When nominal wages adjust more slowly than changes in the price level, then the aggregate...
An increase in aggregate demand (AD) can cause a recession in the economy. an increase in...
An increase in aggregate demand (AD) can cause a recession in the economy. an increase in cyclical unemployment. an expansion in the economy. Flag this Question Question 22 pts Economic growth is shown in the AS-AD model as a leftward shift in the short run AS curve. rightward shift in the AD curve. rightward shift in the long run AS curve. Flag this Question Question 32 pts In the long run, the most important factor that shifts the aggregate supply...