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Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
55. The version of aggregate supply that allows for changes in both product prices and
resource prices is the:
56. Which short-run version of aggregate supply assumes that product prices are:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
57. Refer to the above graph. The long-run aggregate supply curve would be represented by
which line?
58. Refer to the above graph. Which line might represent an immediate-short-run aggregate
supply curve?
59. Refer to the above graph. Which line might represent an aggregate demand curve?
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
60. A fall in the prices of inputs will shift the aggregate:
61. Which would most likely shift the aggregate supply curve? A change in the prices of:
62. A fall in labor costs will cause aggregate:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
63. An increase in productivity will:
64. Which would most likely increase aggregate supply?
65. If the price of crude oil decreases, then this event would most likely:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
66. Refer to the above graph. Which of the following factors will shift AS1 to AS2?
67. Refer to the above graph. Which of the following factors will shift AS1 to AS3?
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
68. Refer to the above graph. Which of the following factors will shift AS1 to AS2?
69. Suppose that an economy produces 500 units of output. It takes 10 units of labor at $15 a
unit and 4 units of capital at $50 a unit to produce this output. The per unit cost of production
is:
70. In an economy it costs $1,500 to produce 2,000 units of output. If the costs increase to
$2,500, then the per unit cost of production will have increased from:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
71. Suppose that real domestic output in an economy is 300 units, the quantity of inputs is 50
and the unit price of the input is $9. The level of productivity and the per-unit cost of
production are, respectively:
72. Suppose that real domestic output in an economy is 300 units, the quantity of inputs is 50
and the price of each input is $9. If productivity increased such that 400 units are now
produced with the quantity of inputs still equal to 50, then per-unit production costs would:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
73. Refer to the above information. The level of productivity in this economy is:
74. Refer to the above information. The per-unit cost of production is:
75. Refer to the above information. If productivity increased such that 3000 units are now
produced with the quantity of inputs still equal to 60, then per-unit production costs would:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
76. Refer to the above information. All else equal, if the price of each input decreased from
$30 to $20, productivity would:
77. If Congress passed new laws significantly increasing the regulation of business, this action
would tend to:
78. A decrease in business taxes will tend to:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
79. Which would be considered to be one of the factors that shift the aggregate supply curve?
A change in:
80. If the U.S. dollar appreciates in value relative to foreign currencies, then this will:
81. If personal income taxes and business taxes increase, then this will:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
Answer the question based on the following list of items that are related to aggregate demand
and/or aggregate supply.
82. Refer to the above list. Changes in which combination of factors best explain why the
aggregate supply curve would shift?
83. Refer to the above list. Changes in which of the above two factors would most likely
cause a change in aggregate demand?
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
84. Refer to the above list. A change in which factor is most likely to change both aggregate
demand and aggregate supply?
85. The intersection of the aggregate demand and aggregate supply curves determines the:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
86. Refer to the above graph. This economy is at equilibrium:
87. Refer to the above graph. It depicts an economy in the:
88. Refer to the above graph. If the price level is initially at P1, then the economy will adjust
by:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
89. If at a particular price level, real domestic output from producers is greater than real
domestic output desired by purchasers, then there will be a general:
It shows the aggregate demand-aggregate supply schedule for a hypothetical economy.
90. Refer to the above table. The equilibrium price level and quantity of real domestic output
will be:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
91. Refer to the above table. If the quantity of real domestic output demanded increased by
$2000 at each price level, the new equilibrium price level and quantity of real domestic output
would be:
92. Refer to the above table. Using the original data from the table, if the quantity of real
domestic output demanded increased by $3000 and the quantity of real domestic output
supplied increased by $1000 at each price level, the new equilibrium price level and quantity
of real domestic output would be:
93. A decrease in aggregate demand in the short run will reduce:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
94. Demand-pull inflation is illustrated in the short run aggregate supply-aggregate demand
model as a shift of the aggregate:
95. Demand-pull inflation will:
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
96. Refer to the figure above. If AD1 shifts to AD2, then the equilibrium output:
97. Refer to the figure above. If AD1 shifts to AD2, the full multiplier effect would be an
increase in real GDP from:
98. Refer to the figure above. A shift from AD1 to AD2 would be consistent with what
economic event in U.S. history?
Chapter 12 - Aggregate Demand and Aggregate Supply (+ Appendix)
99. Refer to the figure above. A shift from AD2 to AD1 would be consistent with what
economic event in U.S. history?
It shows the aggregate demand and aggregate supply schedule for a hypothetical economy.
100. Refer to the above table. If the quantity of real domestic output demanded increased by
$1000 at each price level, the new equilibrium price level and quantity of real domestic output
would be:
