AP Macro Unit 4 Lesson 2 - Spring 2011
5 Questions
| Attempts: 95
Welcome to “AP Macro Unit 4 Lesson 2 – Spring 2011”, where today we’ll be tasking you with answering a whole host of questions on the topic of aggregate supply – the total supply of good that are available to a particular market from producers. What do you know about the topic?
Questions and Answers
- 1.A change in which of the following will shift the short-run aggregate supply curve?
- A.
Per-unit production costs
- B.
Commodity prices
- C.
Nominal wages
- D.
Productivity
- E.
All of the above
- 2.Because changes in the aggregate price level have no effect on aggregate output in the long-run, the long-run aggregate supply curve is depicted graphically as
- A.
Horizontal
- B.
Negatively-sloped
- C.
Vertical
- D.
Positively-sloped
- E.
None of the above
- 3.A decrease in which of the following will cause the short-run aggregate supply curve to shift to the left?
- A.
Commodity prices
- B.
The cost of health care insurance premiums paid for by employers
- C.
Nominal wages
- D.
Productivity
- E.
All of the above
- 4.Mainstream economists believe that employees are reluctant to accept nominal wage decreases during recessions and employers are reluctant to accept nominal wage increases during expansions; this is the Keynesian notion that wages are relatively _______ in the short-run
- A.
"real"
- B.
"sticky"
- C.
"flexible"
- D.
"low"
- E.
"high"
- 5.As the price level rises relative to costs and the real wage rate falls, profits _________ and the number of firms in the business __________
- A.
Increase; increases
- B.
Increase; decreases
- C.
Decrease; increases
- D.
Decrease; decreases
- E.
Do not change; do not change
Featured Quizzes
Back to top