322 Miller Economics Today, 16th Edition
15) When the price level is below the level at which the aggregate demand curve crosses the long
run aggregate supply curve,
A) there will be no price level change.
B) there will be pressures that will lead to a shift of either the aggregate demand or the long
run aggregate supply curves.
C) actual real GDP would be less than total planned real expenditures, and the price level will
rise.
D) actual real GDP would exceed total planned real expenditures, and the price level will fall.
16) Economic growth will be associated with a constant price level when
A) the increase in aggregate demand exactly equals the increase in long run aggregate
supply.
B) the increase in aggregate demand is more than the increase in long run aggregate supply.
C) the increase in aggregate demand is less than the increase in long run aggregate supply.
D) the increase in aggregate demand is accompanied by a reduction in short run aggregate
supply.
17) Over the last twenty years, real GDP in the U.S. economy has increased and there has been
inflation. This indicates that
A) aggregate demand has increased while aggregate supply has been constant.
B) aggregate demand has been constant while aggregate supply has increased.
C) aggregate demand has increased more than aggregate supply.
D) aggregate demand has increased less than aggregate supply.
18) Economic growth takes place
A) only when both aggregate demand and aggregate supply increase.
B) when aggregate supply increases.
C) when aggregate demand decreases.
D) only if the price level is constant or rising.