Long run aggregate supply is the relationship between the quantity of real GDP s maintain full employment. O A. interest rate O B. real wage rate O C. money wage rate O D. quantity of money Short-run aggregate supply is the relationship between the quantity of potential GDP remain constant suppl O A. potential GDP, price level O B. real GDP: price level O C. nominal GDP, exchange rate O D. real GDP, interest rate

Long run aggregate supply is the relationship between the quantity of real GDP s maintain full employment. O A. interest rate O B. real wage rate O C. money wage rate O D. quantity of money Short-run aggregate supply is the relationship between the quantity of potential GDP remain constant suppl O A. potential GDP, price level O B. real GDP: price level O C. nominal GDP, exchange rate O D. real GDP, interest rate

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A decrease in the price of foreign oil will affect the U.S. economy by O a. decreasing aggregate supply. O b. increasing aggregate demand. O c. increasing aggregate supply. O d. decreasing aggregate demand
170 Price 140 level 120 100 D AD5 AD4 AD 3 AD, AD2 3.0 4.0 5.0 6.0 7.0 8.0 Real GDP In Exhibit 20-8, if aggregate demand shifts from AD₁ to AD3, O a. real GDP will increase from $3.0 to $4.0, and the price level will increase from 100 to 140. Ob. real GDP will increase from $3.0 to $7.0, and the price level will increase from 100 to 120. Oc. real GDP will increase from $3.0 to $7.0, and the price level will increase from 100 to 140. Od. real GDP will increase from $3.0 to $4.0, and the price level does not change.
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29) Suppose that from 2017 to 2018, unemployment went from 7.2 to 5.6% and inflation went from 2.17 to 1.1%. An explanation of these changes might be that the O long-run aggregate supply curve shifted to the left. O interest rates increased O consumer spending increased O overnment decreased federal expenditures O price of steel decreased
6. Over time, increases in Potential GDP are the result of O A. inflation O B. increased government spending O C. lower taxes O D. increases in technology
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In order to shift the vertical aggregate supply curve to the left, which of the following would have to occur? O expansion of potential GDP O increase in productivity flexible wage and price adjustments O breakdown of key market institutions