978-1259723223 Test Bank TBChap032 Part 2

32–21

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D. $5.

44.

Suppose that real domestic output in an economy is 20 units, the quantity of inputs is 10,

and the price of each input is $4. All else being equal, if the price of each input increased

from $4 to $6, productivity would

45.

Suppose that real domestic output in an economy is 20 units, the quantity of inputs is 10,

and the price of each input is $4. Given an increase in input price from $4 to $6, we would

expect the aggregate

46.

Other things equal, if the U.S. dollar were to depreciate, the

47.

Which one of the following would increase per-unit production cost and therefore shift

the aggregate supply curve to the left?

48.

An economy is employing 2 units of capital, 5 units of raw materials, and 8 units of

labor to produce its total output of 640 units. Each unit of capital costs $10; each unit of raw

materials, $4; and each unit of labor, $3. The per-unit cost of production in this economy is

32–23

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Dif fic ult y: 01 Easy

Learning Objective: 32-03 Define aggregate supply AS and explain how it differs in the

immediate short run, the short run, and the long run.

Test Bank: I

To pic: Aggregate Supply

49.

An economy is employing 2 units of capital, 5 units of raw materials, and 8 units of

labor to produce its total output of 640 units. Each unit of capital costs $10; each unit of raw

materials, $4; and each unit of labor, $3. If the per-unit price of raw materials rises from $4

to $8 and all else remains constant, the per–unit cost of production will rise by about

50.

An economy is employing 2 units of capital, 5 units of raw materials, and 8 units of

labor to produce its total output of 640 units. Each unit of capital costs $10; each unit of raw

materials, $4; and each unit of labor, $3. If the per-unit price of raw materials rises from $4

to $8 and all else remains constant, the aggregate

51.

The determinants of aggregate supply

52.

Which of the following would not shift the aggregate supply curve?

53.

Productivity measures

54.

Per-unit production cost is

55.

Suppose that nominal wages fall and productivity rises in a particular economy. Other

things equal, the aggregate

56.

Other things equal, appreciation of the dollar

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Accessibility: Keyboard Navigation

Blooms: Understand

Di ffi culty: 02 Medium

Learning Objective: 32-02 Explain the factors that cause changes shifts in AD. Learning

Objective: 32-04 Explain the factors that cause changes shifts in AS.

Test Bank: I

To pic: Changes in Aggregate Demand

T o p i c : Changes in Aggregate Supply

57.

Other things equal, a reduction in personal and business taxes can be expected to

58.

Other things equal, an improvement in productivity will

59.

Input Quantity

Real Domestic Output

100

200

150

300

200

400

The table gives information about the relationship between input quantities and real

domestic output in a hypothetical economy. The level of productivity in the economy is

60.

Input Quantity

Real Domestic Output

100

200

150

300

200

400

The table gives information about the relationship between input quantities and real

domestic output in a hypothetical economy. If the price of each input is $5, the per-unit cost

of

production in the economy is

32–28

written consent of McGraw-Hill Education.

Learning Objective: 32-03 Define aggregate supply AS and explain how it differs in the

immediate short run, the short run, and the long run.

Test Bank: I

To pic: Aggregate Supply

Type: Table

61.

Input Quantity

Real Domestic Output

100

200

150

300

200

400

The table gives information about the relationship between input quantities and real

domestic output in a hypothetical economy. Suppose that the price of each input increased

from $5 to $8. The per-unit cost of production in the economy would

62.

The short-run aggregate supply curve represents circumstances where

32–29

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Learning Objective: 32-03 Define aggregate supply AS and explain how it differs in the

immediate short run, the short run, and the long run.

Test Bank: I

To pic: Aggregate Supply

63.

The economy’s long-run aggregate supply curve

64.

The economy‘s long-run AS curve assumes that wages and other resource prices

65.

In the diagram, the economy‘s long-run aggregate supply curve is shown by line

66.

In the diagram, the economy‘s relevant aggregate demand and long-run aggregate supply

curves, are lines

67.

In the diagram, the economy‘s short–run AS curve is line , and its long-run AS curve is

line _.

68. The equilibrium price level and level of real output occur where

32–33

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Accessibility: Keyboard Navigation

Blooms: Understand

Di ffi culty: 02 Medium

Learning Objective: 32-05 Discuss how AD and AS determine an economys equilibrium

price level and level of real GDP.

Test Bank: I

To pic: Equilibrium in the AD–AS Model

69.

Amount of Real Output

Demanded

Price Level (Index

Value)

Amount of Real Output

Supplied

$200

300

$500

300

250

450

400

200

400

500

150

300

600

100

200

The table gives aggregate demand and supply schedules for a hypothetical economy. The

equilibrium price level will be

70.

Amount of Real Output

Demanded

Price Level (Index

Value)

Amount of Real Output

Supplied

$200

300

$500

300

250

450

400

200

400

500

150

300

600

100

200

The table gives aggregate demand and supply schedules for a hypothetical economy. If the

price level is 250 and producers supply $450 of real output,

71.

Amount of Real Output

Demanded

Price Level (Index

Value)

Amount of Real Output

Supplied

$200

300

$500

300

250

450

400

200

400

500

150

300

600

100

200

The table gives aggregate demand and supply schedules for a hypothetical economy. If the

amount of real output demanded at each price level falls by $200, the equilibrium price

level and equilibrium level of real domestic output will fall to

32–35

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C.

150 and $300, respectively.

D. 150 and $200, respectively.

72.

Amount of Real Output

Demanded

Price Level (Index

Value)

Amount of Real Output

Supplied

$200

300

$500

300

250

450

400

200

400

500

150

300

600

100

200

The table gives aggregate demand and supply schedules for a hypothetical economy. If the

amount of real output demanded at each price level falls by $200, this might have been

caused by

73.

Graphically, demand–pull inflation is shown as a

74.

Graphically, cost-push inflation is shown as a

75.

Graphically, the full-employment, low-inflation, rapid-growth economy of the last half

of the 1990s is depicted by a

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Di ffi culty: 02 Medium

Learning Objective: 32-06 Describe how the AD-AS model explains periods of demand-

pull inflation, cost-push inflation, and recession.

Test Bank: I

To pic: Changes in Equilibrium

76.

Refer to the diagrams, in which AD1 and AS1 are the “before” curves and AD2 and AS2 are

the “after” curves. A recession is depicted by

32–38

77.

Refer to the diagrams, in which AD1 and AS1 are the “before” curves and AD2 and AS2 are

the “after” curves. Cost-push inflation is depicted by

78.

Refer to the diagrams, in which AD1 and AS1 are the “before” curves and AD2 and AS2 are

the “after” curves. Growth, full-employment, and price stability are depicted by

79.

Refer to the diagrams, in which AD1 and AS1 are the “before” curves and AD2 and AS2 are

the “after” curves. Other things equal, an increase in investment spending is depicted by

32–40

written consent of McGraw-Hill Education.

Learning Objective: 32-06 Describe how the AD-AS model explains periods of demand-

pull inflation, cost-push inflation, and recession.

Test Bank: I

To pic: Changes in Equilibrium

Type: Graph

80.

Refer to the diagrams, in which AD1 and AS1 are the “before” curves and AD2 and AS2 are

the “after” curves. Other things equal, a decline in productivity is depicted by