no handwritten notes! 1. Aggregate supply definitionsThe short-run aggregate supply curve shows:O What happens to the level of real GDP suppliers are willing and able to produce in an economy as the overall price level changes, during aperiod in which output prices can change but input prices are fixedO How firms respond to changes in interest ratesO What happens to output in an economy when the government spends more moneyO The relationship between the price level and aggregate expenditureWhich of the following are assumed to remain unchanged along a given short-run aggregate supply curve? Check all that apply.Input pricesThe position of the aggregate demand curveThe price levelInstitutions, such as patent laws and tax systemsPotential output (also called the natural rate of real output) refers to:O The quantity of output produced at the intersection of the aggregate demand and aggregate supply curvesO The quantity of output produced when the prices of all inputs are allowed to fully adjustO The maximum possible output of an economy with no unemploymentO The quantity of output that would be produced if every member of the labour force worked 40 hours per weekComplete the following table by matching each definition to the appropriate economic time frame.Long RunOODefinitionA period of time in which some input prices and wages are fixedA period of time in which all input prices and wages are renegotiatedShort RunOO

The supply shows the relationship between Price and the quantity supplied which is a direct and…

1. Aggregate supply definitions The short-run aggregate supply curve shows: O What happens to the level of real GDP suppliers are willing and able to produce in an economy as the overall price level changes, during a period in which output prices can change but input prices are fixed O How firms respond to changes in interest rates O What happens to output in an economy when the government spends more money O The relationship between the price level and aggregate expenditure "Which of the following are assumed to remain unchanged along given short-run aggregate supply curve? Check all that apply. Input prices