Exam 9: Aggregate Supply and Macroeconomic Equilibrium

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A) Real output exceeds the natural level of output.
B) Real output is equal to the natural level of output.
C) Real output may exceed or may be less than the natural level of output.
D) Real output is less than the natural level of output.

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A) 0.10
B) 0.20
C) 0.30
D) 0.40

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A) by a LRAS that is an upward-sloping line
B) by a LRAS that is a downward-sloping line
C) by a LRAS that is a horizontal line
D) by a LRAS that is a vertical line

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A) It will increase.
B) It will stay the same.
C) It will usually increase, but not always.
D) It will decrease.

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A) when the aggregate demand curve shifts rightward and aggregate supply is fixed
B) when the short-run aggregate supply curve shifts leftward while aggregate demand is fixed
C) when the short-run aggregate supply curve shifts rightward
D) when the aggregate demand curve shifts leftward at a faster rate than short-run aggregate supply

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A) an increase in long-run aggregate supply
B) a decrease in aggregate demand
C) an increase in short-run aggregate supply
D) an increase in aggregate demand

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A) It will not increase real output in either the short run or the long run.
B) It will increase real output in both the short run and long run.
C) It will increase real output only in the short run.
D) It will increase real output only in the long run.

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A) It will decrease, illustrated by a rightward shift in the SRAS curve.
B) It will increase, illustrated by a leftward shift in the SRAS curve.
C) It will decrease, illustrated by a leftward shift in the SRAS curve.
D) It will increase, illustrated by a rightward shift in the SRAS curve.

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