Which of the following events will increase short-run aggregate supply?

An increase in the natural rate of unemployment
An increase in resource prices
An advance in technology
An increase in foreign income

Which of the following events will increase long-run aggregate supply?

A decrease in interest rates
An advance in technology
An increase in expected profit
An increase in resource prices

A change in ___________ creates a movement along the aggregate demand curve, while a change in _____________ shifts the aggregate demand curve.

foreign income; the foreign exchange rate
the price level; inflation expectations
expected profits; tax rates
domestic wealth; foreign income

Last year in the country of Union, the price level increased and real GDP decreased. Such an outcome might have occurred because short-run aggregate supply _______________ and aggregate demand ________________.

increased; increased
decreased; did not change
increased; did not change
did not change; increased

The table gives the aggregate demand and aggregate supply schedules in Lotus Land. The short-run macroeconomic equilibrium is a price level of _____________ and a real GDP of ________________.

120; $400
110; $500
90; $400
100; $400

The table gives the aggregate demand and aggregate supply schedules in Lotus Land. In short-run equilibrium, there is ___________________.

an inflationary gap of $200
an inflationary gap of $100
a recessionary gap of $100
a recessionary gap of $200

The table gives the aggregate demand and aggregate supply schedules in Lotus Land. Lotus Land is in short-run macroeconomic equilibrium. In the long run, Lotus Land will return to full-employment as ___________________.

the government cuts taxes
wages decrease
businesses cut their imports
wages increase

The table gives the aggregate demand and aggregate supply schedules in Lotus Land. In long-run macroeconomic equilibrium, the price level will be ______________ and real GDP will be ______________.

90; $400
110; $500
100; $600
120; $400

The country of Stanley is at a below-full employment equilibrium. Which of the following events will return Stanley to full-employment?

An increase in government purchases
A natural disaster in the rest of the world
An increase in wage rates
An advance in technology

When aggregate demand persistently grows at a rate that exceeds the growth rate of long-run aggregate supply, the economy will experience ______________________.

persistent inflation
rising wage rates
a slowdown in the economic growth rate
persistent full-employment

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