Exam 11: Aggregate Supply

In the long run,a decrease in aggregate demand will cause a(n)

Suppose that the real wage remained unchanged between year 1 and 2 but the nominal wage increased from $20 to $24.What is true about the price level?

If the price level rises by 4 percent and the nominal wage rises 6 percent,the real wage

Exhibit 10-4 -The shift from AS to AS' in Exhibit 10-4 would occur when the actual price level is higher than expectations.

As macroeconomic output expands,the cost of additional output increases.

Exhibit 10-5 -If the economy is at point M in Exhibit 10-5,

Which of the following does not influence the position of the long-run aggregate supply curve?

If the expected price level exceeds the actual price level,

Which of the following is true of a contractionary gap?

The potential output of an economy is the level of output produced when the

Given the aggregate demand curve,an adverse supply shock would

In the long run,but not in the short run,

At the potential level of output,there is no seasonal unemployment.

Exhibit 10-2 -If the actual price level in Exhibit 10-2 exceeds the expected price level,then

Exhibit 10-9 -The movement shown in Exhibit 10-9 could be caused by

The natural rate of unemployment includes frictional,cyclical,and structural unemployment.

Exhibit 10-6 -In Exhibit 10-6,at income level Y₁

The main effect of a decrease in the stock of capital is a(n)

Actual output falls below potential output

Potential output depends on all of the following except one.Which is the exception?