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Microeconomics Ch 13

Microeconomics Ch 13

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Published by yawahab
Microeconomics Ch 13 mcq
Microeconomics Ch 13 mcq

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Published by: yawahab on Jun 01, 2014
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209
 
7
AGGREGATE SUPPLY AND AGGREGATE DEMAND*
 
*
 
This is Chapter 23 in
Economics 
.
Aggregate Supply
Topic: Aggregate Supply/Aggregate Demand Model Skill: Recognition
1) The aggregate supply/aggregate demand model is used to help understand all of the following ex-cept  A) inflation. B) business cycle fluctuations. C) the aggregate value of stock traded in the stock market. D) growth of potential GDP.
Answer: C Topic: Aggregate Supply Fundamentals Skill: Recognition
2) At any given time, which of the factors in the aggregate supply function,
 =
(
L
,
,
), is NOT fixed?  A)
Y
B)
L
C)
K
D)
T
Answer: B Topic: Aggregate Supply Fundamentals Skill: Recognition
3) Which of the following variables does NOT di-rectly influence aggregate production?  A) the state of technology B) the quantity of capital C) the quantity demanded D) the quantity of labor
Answer: C Topic: Aggregate Supply Fundamentals Skill: Conceptual
4) The supply of real GDP is a function of  A) the total expenditures of consumers, investors and government. B) the sum of wages, salaries, corporate profits, rents and interest. C) only the state of technology. D) the quantities of labor, capital and the state of technology.
Answer: D Topic: Aggregate Supply Skill: Recognition
5) The quantity of real GDP supplied ____ the amount of ____.  A) increases as; labor input decreases B) decreases as; capital input increases C) decreases as; capital and labor input decreases D) is unaffected by; technology
Answer: C Topic: Aggregate Supply Skill: Recognition
6) Aggregate supply describes the behavior of  A) foreign buyers. B) households. C) government. D) producers.
Answer: D
Chapter
 
 
210
 CHAPTER 7
Topic: Aggregate Supply Skill: Recognition
7) An aggregate supply (
 AS 
) curve depicts the rela-tionship between  A) the price level and nominal GDP. B) household expenditures and household income. C) the price level and the aggregate quantity sup-plied. D) the price level and the aggregate quantity de-manded.
Answer: C Topic: Macroeconomic Long Run Skill: Recognition
8) In the macroeconomic long run,  A) GDP always is below potential GDP. B) there is full employment with no unemploy-ment. C) output always is above potential GDP. D) there is full employment and real GDP is equal to potential GDP.
Answer: D Topic: Macroeconomic Long Run Skill: Recognition
9) The quantity of real GDP supplied at full em-ployment is called  A) hypothetical GDP. B) short-run equilibrium GDP. C) potential GDP. D) all of the above.
Answer: C Topic: Macroeconomic Long Run Skill: Conceptual
10) At potential GDP  A) there is no unemployment but there is not nec-essarily full employment. B) there is no unemployment and there is full em-ployment. C) unemployment is at its natural rate. D) None of the above are correct.
Answer: C Topic: Long-Run Aggregate Supply Skill: Recognition
11) The long-run aggregate supply (
LAS 
) curve  A) has a positive slope. B) has a negative slope. C) is vertical. D) is horizontal.
Answer: C Topic: Long-Run Aggregate Supply Skill: Recognition
12) In the long-run  A) the aggregate supply curve is upward sloping. B) real GDP is equal to potential GDP. C) aggregate supply depends on the price level. D) All of the above answers are correct.
Answer: B Topic: Long-Run Aggregate Supply Skill: Recognition
13) In the macroeconomic long run,  A) real GDP = potential GDP. B) the economy is at full employment. C) regardless of the price level, the economy is pro-ducing at potential GDP. D) All of the above are correct.
Answer: D Topic: Long-Run Aggregate Supply Skill: Recognition
14) The long-run aggregate supply curve is ____ be-cause along it, as prices rise, the money wage rate ____.  A) vertical; falls B) vertical; rises C) upward sloping; falls D) upward sloping; stays constant
Answer: B Topic: Long-Run Aggregate Supply Skill: Conceptual
15) The long-run aggregate supply curve illustrates the  A) relationship of prices with the level of GDP  when real GDP equals potential GDP. B) relationship of aggregate supply and aggregate demand. C) amount of products producers offer at various prices when money wages and other resource prices do not change. D) surpluses, shortages and equilibrium level of GDP.
Answer: A
 
AGGREGATE SUPPLY AND AGGREGATE DEMAND
211
 
Topic: Long-Run Aggregate Supply Skill: Conceptual
16) The long-run aggregate supply curve  A) is negatively sloped. B) is positively sloped. C) is vertical at the level of potential GDP. D) is horizontal at the level of potential GDP.
Answer: C Topic: Long-Run Aggregate Supply Skill: Conceptual
17) If the economy is at the natural rate of unem-ployment,  A) real GDP > potential GDP. B) real GDP < potential GDP. C) real GDP = potential GDP. D) All of the above can occur when the economy is at the natural rate of unemployment.
Answer: C Topic: Long-Run Aggregate Supply Skill: Conceptual
18) For movements along the long-run aggregate sup-ply curve,  A) potential GDP is dependent on the price level. B) the prices of goods and services change while the prices of productive resources hold steady. C) the price level and the money wage rate change in the same proportion. D) All of the above are correct.
Answer: C Topic: Long-Run Aggregate Supply Skill: Conceptual
19) The long-run aggregate supply curve shows the  A) maximum GDP the nation will ever produce. B) full-employment level of real GDP. C) level of real GDP associated with a constant price level. D) level of output for which real GDP equals nominal GDP.
Answer: B Topic: Long-Run Aggregate Supply Skill: Conceptual
20) Which of the following is true about the long-run aggregate supply curve?  A) It is vertical at the level of potential GDP. B) It shows the relationship between the price level and real GDP when wages and other costs are at an equilibrium level. C) It does not shift in response to temporary changes in aggregate demand. D) All of the above are true.
Answer: D Topic: Macroeconomic Short Run Skill: Recognition
21) In the macroeconomic short run,  A) actual real GDP may be less than or more than potential GDP. B) the unemployment rate is zero. C) the economy is always moving away from full employment. D) actual real GDP always equals potential GDP.
Answer: A Topic: Short-Run Aggregate Supply Skill: Recognition
22) The short-run aggregate supply curve  A) is vertical. B) has a negative slope. C) has a positive slope. D) is horizontal.
Answer: C Topic: Short-Run Aggregate Supply Skill: Recognition
23) In the short run, the aggregate supply curve is  A) horizontal. B) vertical. C) upward sloping. D) downward sloping.
Answer: C

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