Tackle the Test: Multiple-Choice Questions

1. Question

   Which of the following will shift the short-run aggregate supply curve? A change in

   A.

   profit per unit at any given price level

   B.

   commodity prices

   C.

   nominal wages

   D.

   productivity

   E.

   all of the above

   Which of the following will shift the shor

2. Question

   Because changes in the aggregate price level have no effect on aggregate output in the long run, the long-run aggregate supply curve is

   A.

   vertical.

   B.

   horizontal.

   C.

   fixed.

   D.

   negatively sloped.

   E.

   positively sloped.

   Because changes in the aggregate price level have no effect on aggregate output in the long run, the lon

3. Question

   The horizontal intercept of the long-run aggregate supply curve is

   A.

   at the origin.

   B.

   negative.

   C.

   at potential output.

   D.

   equal to the vertical intercept.

   E.

   always the same as the horizontal intercept of the short-run aggregate supply curve.

   The horizontal intercept of the lon

4. Question

   A decrease in which of the following will cause the short-run aggregate supply curve to shift to the left?

   A.

   commodity prices

   B.

   the cost of health care insurance premiums paid by employers

   C.

   nominal wages

   D.

   productivity

   E.

   the use of cost-of-living allowances in labor contracts

   A decrease in which of the following will cause the shor

5. Question

   That employers are reluctant to decrease nominal wages during economic downturns and raise nominal wages during economic expansions is one reason nominal wages are described as

   A.

   long-run.

   B.

   unyielding.

   C.

   flexible.

   D.

   real.

   E.

   sticky.

   That employers are reluctant to decrease nominal wages during economic downturns and raise nominal wages during economic expansions is one reason nominal wages are described as