Econ 111 Chapter 13 Exam Questions
and Answers All Correct
Which aggregate supply curve has a positive slope? - Answer-short run only
The short-run aggregate supply curve slopes upward because of all of the following
reasons except - Answer-in the short run, an unexpected change in the price of an
important resource can change the cost to firms.
Refer to the figure to the right. Ceteris paribus, an increase in the expected future price
level would be represented by a movement from
(Graph) - Answer-SRAS2 to SRAS1.
Workers and firms both expect that prices will be 2.5% higher next year than they are
this year. As a result, - Answer-the short-run aggregate supply curve will shift to the left
as wages increase.
Changes in the price level - Answer-do not affect the level of aggregate supply in the
long run.
Aggregate demand (AD) is comprised of expenditure components that include: -
Answer-government spending, consumption, investment, and net exports.
Refer to the figure to the right. Ceteris paribus, an increase in the labor force would be
represented by a movement from
(Graph) - Answer-SRAS1 to SRAS2.
Consider the short-run aggregate supply curves in the graph at right.
A movement from point A to point B on SRAS1 could be the result of a
A movement from point A to point C could be the result of a change in
(Graph) - Answer-change in the price level.
the labor force.
Refer to the figure to the right. Ceteris paribus, an increase in the price level would be
represented by a movement from
(Graph) - Answer-point A to point B.
and Answers All Correct
Which aggregate supply curve has a positive slope? - Answer-short run only
The short-run aggregate supply curve slopes upward because of all of the following
reasons except - Answer-in the short run, an unexpected change in the price of an
important resource can change the cost to firms.
Refer to the figure to the right. Ceteris paribus, an increase in the expected future price
level would be represented by a movement from
(Graph) - Answer-SRAS2 to SRAS1.
Workers and firms both expect that prices will be 2.5% higher next year than they are
this year. As a result, - Answer-the short-run aggregate supply curve will shift to the left
as wages increase.
Changes in the price level - Answer-do not affect the level of aggregate supply in the
long run.
Aggregate demand (AD) is comprised of expenditure components that include: -
Answer-government spending, consumption, investment, and net exports.
Refer to the figure to the right. Ceteris paribus, an increase in the labor force would be
represented by a movement from
(Graph) - Answer-SRAS1 to SRAS2.
Consider the short-run aggregate supply curves in the graph at right.
A movement from point A to point B on SRAS1 could be the result of a
A movement from point A to point C could be the result of a change in
(Graph) - Answer-change in the price level.
the labor force.
Refer to the figure to the right. Ceteris paribus, an increase in the price level would be
represented by a movement from
(Graph) - Answer-point A to point B.
