Along the aggregate demand curve, which of the following are held constant: A. t

ID: 1125066 • Letter: A

Question

Along the aggregate demand curve, which of the following are held constant:

A. the money supply and real output

B. the money supply and velocity (liquidity preference)

C. real output and prices

D. nominal output and velocity (liquidity preference)

The short-run aggregate supply curve implies that real output exceeds its long-run level when the price level is:

A. low

B. greater than the expected price level

C. high

D. less than the expected price level

D. nominal output and velocity (liquidity preference)

In the aggregate demand-supply model, a short-run equilibrium occurs at the combination of output and prices where

A. aggregate demand equals long-run aggregate supply

B. aggregate demand equals long-run and short-run aggregate supply

C. aggregate demand equals short-run aggregate supply

D. short-run aggregate supply equals long-run aggregate supply

In the short-run, if the price level is greater than the expected price level, then in the long run the aggregate

A. demand curve will shift leftward

B. short-run supply curve will shift downward

C. short-run supply curve will shift upward

D. demand curve will shift rightward

Answer.)

Q1.) B. the money supply and velocity (liquidity preference)

Q2.) D. less than the expected price level

Q3.) C. aggregate demand equals short-run aggregate supply

Q4.) B. short-run supply curve will shift downward

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