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Posted on May 23, 2022

According to the long-run aggregate supply curve, when _____, the quantity of aggregate output supplied _____.

According to the long-run aggregate supply curve, when _____, the quantity of aggregate output supplied _____.
A) nominal wages rise; falls
B) the aggregate price level rises; does not change
C) the aggregate price level rises; falls
D) the price of commodities falls; rises

Posted on May 23, 2022

If all prices, including the nominal wage rate, double in the long run, then aggregate output supplied will:

If all prices, including the nominal wage rate, double in the long run, then aggregate output supplied will:
A) double.
B) rise.
C) fall.
D) remain unchanged.

Posted on May 23, 2022

The long-run supply curve illustrates how the aggregate output supplied is _____ the aggregate price level.

The long-run supply curve illustrates how the aggregate output supplied is _____ the aggregate price level.
A) positively related to
B) negatively related to
C) unrelated to
D) a one-to-one correspondence with

Posted on May 23, 2022

The level of output that the economy would produce if all prices, including nominal wages, were fully flexible is called:

The level of output that the economy would produce if all prices, including nominal wages, were fully flexible is called:
A) real GDP.
B) Keynesian GDP.
C) structural GDP.
D) potential GDP.

Posted on May 23, 2022

The point at which the long-run aggregate supply curve touches the x-axis is known as:

The point at which the long-run aggregate supply curve touches the x-axis is known as:
A) potential output.
B) the accelerator point.
C) the multiplier point.
D) the self-correcting economy point.

Posted on May 23, 2022

An aggregate output level lower than potential output means there will be:

An aggregate output level lower than potential output means there will be:
A) high interest rates.
B) high inflation.
C) low unemployment.
D) high unemployment.

Posted on May 23, 2022

Producing an aggregate output level that is higher than potential output is possible only if nominal wages:

Producing an aggregate output level that is higher than potential output is possible only if nominal wages:
A) fully adjust downward..
B) fully adjust upward.
C) haven’t yet fully adjusted upward.
D) haven’t yet fully adjusted downward.

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