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

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

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

An advance in technology
An increase in expected profit
A decrease in interest rates
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.

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

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

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 ________________.

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

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

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

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 ___________________.

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

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 ______________.

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

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

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

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

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

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