The short-run aggregate supply curve has: O A. a positive slope because as the inflation rate increases, so does the quantity of output supplied. B. a positive slope because as the inflation rate increases, the quantity of output supplied decreases. C. a negative slope because as the inflation rate increases, the quantity of output supplied decreases. OD. a negative slope because as the inflation rate increases, so does the quantity of output supplied.

The short-run aggregate supply curve has: O A. a positive slope because as the inflation rate increases, so does the quantity of output supplied. B. a positive slope because as the inflation rate increases, the quantity of output supplied decreases. C. a negative slope because as the inflation rate increases, the quantity of output supplied decreases. OD. a negative slope because as the inflation rate increases, so does the quantity of output supplied.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the following would impose the greatest costs to society? TO a. stable rates of inflation lO b. variable rates of inflation IO c. low levels of expected inflation PO d. high levels of expected inflation
Which of the following statements are correct? Select one or more: O a. To find GDP at constant prices we can use the CPl to deflate GDP at current prices O b. Inflation is measured by calculating the cost of a given bundle of goods. c. The basket of goods used to calculate CPI inflation is fixed for long periods O d. Some price indices adjust for the change in the quality of goods over time, as well as the change in prices.
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Question 1 Which of the following is not a reason for the downward slope of the aggregate demand curve? O a. Interest-rate effect O b. Net exports effect O c. Government spending effect O d. Real balances effect
changes in step with the price level to Long run aggregate supply is the relationship between the quantity of real GDP supplied and the price level when the 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 supplied and the when the money wage rate, the prices of other resources, and potential GDP remain constant O A. potential GDP, price level O B. real GDP, price level O C. nominal GDP, exchange rate O D. real GDP, interest rate
A price-level increase, Ceteris Paribus, will: Select one: O a. cause an upward movement along the aggregate demand curve. O b. cause a downward movement along the aggregate demand curve. O c. cause a rightward shift of the aggregate demand curve. O d. have no impact on the aggregate demand curve. O e. cause a leftward shift of the aggregate demand curve.
Actual inflation is the sum of three separate components: .. O a. Accelerated, expected and output gap inflation. O b. Validated, expected and output gap inflation. O c. Output gap, expected and supply-shock inflation. O d. Accelerated, demand and supply inflation. O e. Output gap, wage-push and demand inflation.
does not increase output and employment but prices. O a. None of these O b. Inflationary gap O c. Deflationary gap O d. Equilibrium
Constant dollars are dollars Select one: O a. corrected for general price level changes. O b.issued by the Federal Reserve with values that fail to change even in the face of inflation or deflation. Oc. measured in terms of current-year prices. O d. issued by the U.S. Treasury with values that fail to change even in the face of inflation or deflation.