The steepness of the aggregate supply curve depends on the: A) rate of inflation

Question

The steepness of the aggregate supply curve depends on the: A) rate of inflation in the economy.
B) change in relative prices of commodities.
C) substitutability of the inputs used in producing various goods and services.
D) ability of the producers to respond to price-level changes in the short run.
E) the market rate of interest.
42. Which of the following explains the effect of prices on profits in the short-run? A) The direct relationship between aggregate quantity demanded and national output.
B) The direct relationship between aggregate quantity supplied and the price level.
C) The inverse relationship between aggregate quantity demanded and national output.
D) The inverse relationship between aggregate quantity supplied and profits.
E) The inverse relationship between aggregate quantity supplied and national output.
43. Which of the following is true of the aggregate supply curve? A) It shows the inverse relationship between prices and national output.
B) It shows the positive relationship between the price level and the supply of all goods produced in the economy.
C) It shows the amount of real GDP consumed at different price levels.
D) It is a negatively sloped curve that shows the relationship between the price level and the cost of production of firms in the economy.
E) It shows the positive relationship between price and quantity supplied of an individual good.
44. Which of the following is not held constant in the short run when determining the aggregate supply curve? A) Interest rates
B) Rent
C) Wages
D) Profit
E) Price level
45. In the short-run, an increase in the average price level will cause: A) demand for the good to increase but total production to decline.
B) profits to rise and, thus, total production to increase.
C) interest rates to fall and thus total production to decline.
D) input costs to fall and, thus, total production to rise.
E) input costs to fall and, thus, total production to decline.
46. The positive slope of the AS curve is a _____ phenomena, when the _____ are held constant. A) long-run; business profits
B) short-run; government expenditures
C) short-run; costs of production
D) long-run; commodity prices
E) long-run; aggregate expenditures
47. As the level of real GDP increases, the short-run aggregate supply curve: A) shifts to the right.
B) shifts to the left.
C) becomes flatter.
D) becomes steeper.
E) becomes horizontal to the real GDP axis.
48. The degree of responsiveness of aggregate output to a price change declines as the: A) rate of savings increases.
B) economy approaches its potential output.
C) GDP gap widens over time.
D) the price elasticity of imports declines.
E) the excess capacity of all the firms in the economy increases over time.
49. If the national output cannot be increased unless the productive capacity or potential GDP increases, the aggregate supply curve is: A) downward-sloping.
B) U-shaped.
C) vertical.
D) upward-sloping.
E) horizontal.
50. Consider the following statement: "If the government attempts to raise employment through increased fiscal spending, all it will end up doing will be to increase the price level." The statement rests on the assumption that: A) the aggregate demand curve is a horizontal line.
B) the aggregate supply curve is a vertical line.
C) the aggregate supply curve is upward-sloping.
D) the aggregate supply curve is downward-sloping.
E) the aggregate supply curve is a horizontal line.
51. The long-run aggregate supply of an economy at the potential level of real GDP is graphically represented by: A) a horizontal line.
B) an upward-sloping curve.
C) a downward-sloping curve.
D) a vertical line.
E) a backward bending curve.
52. Firms' profits or production do not increase in the long run because: A) some factors of production are fixed in the long run.
B) all the factors are variable in the long run.
C) changes in factor costs completely offset any change in price level.
D) there exists an excess capacity in the economy in the long run.
E) factor costs remain fixed in the long run.
53. Which of the following statements is true about the economy in the long run? A) Equilibrium output must be below potential GDP and the rate of unemployment must exceed the natural rate.
B) Production costs are close to zero.
C) The rate of unemployment is zero in the long run.
D) The aggregate demand curve plays no role in determining the equilibrium level of real GDP.
E) The aggregate supply curve is a horizontal line.
54. The steepness of the aggregate supply curve depends on the: A) rate of inflation in the economy.
B) change in relative prices of commodities.
C) substitutability of the inputs used in producing various goods and services.
D) ability of the producers to respond to price-level changes in the short run.
E) the market rate of interest.
The steepness of the aggregate supply curve depends on the: 42. Which of the following explains the effect of prices on profits in the short-run? A) The direct relationship between aggregate quantity demanded and national output.
B) The direct relationship between aggregate quantity supplied and the price level.
C) The inverse relationship between aggregate quantity demanded and national output.
D) The inverse relationship between aggregate quantity supplied and profits.
E) The inverse relationship between aggregate quantity supplied and national output.
42. Which of the following explains the effect of prices on profits in the short-run? A) The direct relationship between aggregate quantity demanded and national output.
B) The direct relationship between aggregate quantity supplied and the price level.
C) The inverse relationship between aggregate quantity demanded and national output.
D) The inverse relationship between aggregate quantity supplied and profits.
E) The inverse relationship between aggregate quantity supplied and national output.
Which of the following explains the effect of prices on profits in the short-run? 43. Which of the following is true of the aggregate supply curve? A) It shows the inverse relationship between prices and national output.
B) It shows the positive relationship between the price level and the supply of all goods produced in the economy.
C) It shows the amount of real GDP consumed at different price levels.
D) It is a negatively sloped curve that shows the relationship between the price level and the cost of production of firms in the economy.
E) It shows the positive relationship between price and quantity supplied of an individual good.
43. Which of the following is true of the aggregate supply curve? A) It shows the inverse relationship between prices and national output.
B) It shows the positive relationship between the price level and the supply of all goods produced in the economy.
C) It shows the amount of real GDP consumed at different price levels.
D) It is a negatively sloped curve that shows the relationship between the price level and the cost of production of firms in the economy.
E) It shows the positive relationship between price and quantity supplied of an individual good.
Which of the following is true of the aggregate supply curve? 44. Which of the following is not held constant in the short run when determining the aggregate supply curve? A) Interest rates
B) Rent
C) Wages
D) Profit
E) Price level
44. Which of the following is not held constant in the short run when determining the aggregate supply curve? A) Interest rates
B) Rent
C) Wages
D) Profit
E) Price level
Which of the following is not held constant in the short run when determining the aggregate supply curve? 45. In the short-run, an increase in the average price level will cause: A) demand for the good to increase but total production to decline.
B) profits to rise and, thus, total production to increase.
C) interest rates to fall and thus total production to decline.
D) input costs to fall and, thus, total production to rise.
E) input costs to fall and, thus, total production to decline.
45. In the short-run, an increase in the average price level will cause: A) demand for the good to increase but total production to decline.
B) profits to rise and, thus, total production to increase.
C) interest rates to fall and thus total production to decline.
D) input costs to fall and, thus, total production to rise.
E) input costs to fall and, thus, total production to decline.
In the short-run, an increase in the average price level will cause: 46. The positive slope of the AS curve is a _____ phenomena, when the _____ are held constant. A) long-run; business profits
B) short-run; government expenditures
C) short-run; costs of production
D) long-run; commodity prices
E) long-run; aggregate expenditures
46. The positive slope of the AS curve is a _____ phenomena, when the _____ are held constant. A) long-run; business profits
B) short-run; government expenditures
C) short-run; costs of production
D) long-run; commodity prices
E) long-run; aggregate expenditures
The positive slope of the AS curve is a _____ phenomena, when the _____ are held constant. 47. As the level of real GDP increases, the short-run aggregate supply curve: A) shifts to the right.
B) shifts to the left.
C) becomes flatter.
D) becomes steeper.
E) becomes horizontal to the real GDP axis.
47. As the level of real GDP increases, the short-run aggregate supply curve: A) shifts to the right.
B) shifts to the left.
C) becomes flatter.
D) becomes steeper.
E) becomes horizontal to the real GDP axis.
As the level of real GDP increases, the short-run aggregate supply curve: 48. The degree of responsiveness of aggregate output to a price change declines as the: A) rate of savings increases.
B) economy approaches its potential output.
C) GDP gap widens over time.
D) the price elasticity of imports declines.
E) the excess capacity of all the firms in the economy increases over time.
48. The degree of responsiveness of aggregate output to a price change declines as the: A) rate of savings increases.
B) economy approaches its potential output.
C) GDP gap widens over time.
D) the price elasticity of imports declines.
E) the excess capacity of all the firms in the economy increases over time.
The degree of responsiveness of aggregate output to a price change declines as the: 49. If the national output cannot be increased unless the productive capacity or potential GDP increases, the aggregate supply curve is: A) downward-sloping.
B) U-shaped.
C) vertical.
D) upward-sloping.
E) horizontal.
49. If the national output cannot be increased unless the productive capacity or potential GDP increases, the aggregate supply curve is: A) downward-sloping.
B) U-shaped.
C) vertical.
D) upward-sloping.
E) horizontal.
If the national output cannot be increased unless the productive capacity or potential GDP increases, the aggregate supply curve is: 50. Consider the following statement: "If the government attempts to raise employment through increased fiscal spending, all it will end up doing will be to increase the price level." The statement rests on the assumption that: A) the aggregate demand curve is a horizontal line.
B) the aggregate supply curve is a vertical line.
C) the aggregate supply curve is upward-sloping.
D) the aggregate supply curve is downward-sloping.
E) the aggregate supply curve is a horizontal line.
50. Consider the following statement: "If the government attempts to raise employment through increased fiscal spending, all it will end up doing will be to increase the price level." The statement rests on the assumption that: A) the aggregate demand curve is a horizontal line.
B) the aggregate supply curve is a vertical line.
C) the aggregate supply curve is upward-sloping.
D) the aggregate supply curve is downward-sloping.
E) the aggregate supply curve is a horizontal line.
Consider the following statement: "If the government attempts to raise employment through increased fiscal spending, all it will end up doing will be to increase the price level." The statement rests on the assumption that: 51. The long-run aggregate supply of an economy at the potential level of real GDP is graphically represented by: A) a horizontal line.
B) an upward-sloping curve.
C) a downward-sloping curve.
D) a vertical line.
E) a backward bending curve.
51. The long-run aggregate supply of an economy at the potential level of real GDP is graphically represented by: A) a horizontal line.
B) an upward-sloping curve.
C) a downward-sloping curve.
D) a vertical line.
E) a backward bending curve.
The long-run aggregate supply of an economy at the potential level of real GDP is graphically represented by: 52. Firms' profits or production do not increase in the long run because: A) some factors of production are fixed in the long run.
B) all the factors are variable in the long run.
C) changes in factor costs completely offset any change in price level.
D) there exists an excess capacity in the economy in the long run.
E) factor costs remain fixed in the long run.
52. Firms' profits or production do not increase in the long run because: A) some factors of production are fixed in the long run.
B) all the factors are variable in the long run.
C) changes in factor costs completely offset any change in price level.
D) there exists an excess capacity in the economy in the long run.
E) factor costs remain fixed in the long run.
Firms' profits or production do not increase in the long run because: 53. Which of the following statements is true about the economy in the long run? A) Equilibrium output must be below potential GDP and the rate of unemployment must exceed the natural rate.
B) Production costs are close to zero.
C) The rate of unemployment is zero in the long run.
D) The aggregate demand curve plays no role in determining the equilibrium level of real GDP.
E) The aggregate supply curve is a horizontal line.
53. Which of the following statements is true about the economy in the long run? A) Equilibrium output must be below potential GDP and the rate of unemployment must exceed the natural rate.
B) Production costs are close to zero.
C) The rate of unemployment is zero in the long run.
D) The aggregate demand curve plays no role in determining the equilibrium level of real GDP.
E) The aggregate supply curve is a horizontal line.
Which of the following statements is true about the economy in the long run? 54.

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