Test Bank - Macroeconomics||Questions and Elaborated Answers| by Michael Parkin, Luke Armstrong, Barbara Moore, Mark Rush

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Test Bank - Macroeconomics||Questions and Elaborated Answers| by Michael Parkin, Luke Armstrong, Barbara Moore, Mark RushThe supply of real GDP is a function of A) the total expenditures of consumer... s, investors and government. B) the sum of wages, salaries, corporate profits, rents and interest. C) only the state of technology. D) the quantities of labor, capital and the state of technology. Answer: D Topic: Aggregate Supply Fundamentals Skill: Conceptual Question history: Previous edition, Chapter 10 AACSB: Reflective Thinking The quantity of real GDP supplied depends on the A) level of aggregate demand. B) quantity of capital, bonds, and stocks. C) quantity of labor, the quantity of capital, and the state of technology. D) price level, the unemployment rate, and the quantity of government expenditures on goods and services. Answer: C Topic: Aggregate Supply Fundamentals Skill: Recognition Question history: Previous edition, Chapter 10 AACSB: Reflective Thinking An aggregate supply curve depicts the relationship between A) the price level and nominal GDP. B) household expenditures and household income. C) the price level and the aggregate quantity supplied. D) the price level and the aggregate quantity demanded. Answer: C Topic: Aggregate Supply Skill: Recognition Question history: Previous edition, Chapter 10 AACSB: Reflective Thinking In the macroeconomic short run, A) actual real GDP may be less than or more than potential GDP. B) the unemployment rate is zero. C) by definition, the economy is always moving away from full employment. D) actual real GDP always equals potential GDP. Answer: A Topic: Macroeconomic Long Run and Short Run Skill: Recognition Question history: Modified 10th edition AACSB: Reflective Thinking When talking about aggregate supply, it is necessary to A) focus on the short run. B) focus on the long run. C) distinguish between long-run aggregate supply and short-run aggregate supply. D) distinguish between long-run full employment and short-run full-employment. Answer: C Topic: Macroeconomic Long Run and Short Run Skill: Recognition Question history: Previous edition, Chapter 10 AACSB: Reflective Thinking We distinguish between the long-run aggregate supply curve and the short-run aggregate supply curve. In the long run A) technology is fixed but not in the short run. B) the price level is constant but in the short run it fluctuates. C) the aggregate supply curve is horizontal while in the short run it is upward sloping. D) real GDP equals potential GDP. Answer: D Topic: Macroeconomic Long Run and Short Run Skill: Recognition Question history: Previous edition, Chapter 10 AACSB: Reflective Thinking In the macroeconomic long run, A) GDP always is below potential GDP. B) there is full employment with no unemployment. C) output always is above potential GDP. D) there is full employment and real GDP is equal to potential GDP. Answer: D Topic: Macroeconomic Long Run and Short Run Skill: Recognition Question history: Previous edition, Chapter 10 AACSB: Reflective Thinking In the macroeconomic long run, A) real GDP equals potential GDP. B) the economy is at full employment. C) regardless of the price level, the economy is producing at potential GDP. D) All of the above are correct. Answer: D Topic: Macroeconomic Long Run and Short Run Skill: Recognition Question history: Previous edition, Chapter 10 AACSB: Reflective Thinking In the long-run A) the aggregate supply curve is upward sloping. B) real GDP is equal to potential GDP. C) aggregate supply depends on the price level. D) All of the above answers are correct. Answer: B Topic: Macroeconomic Long Run and Short Run Skill: Recognition Question history: Previous edition, Chapter 10 AACSB: Reflective Thinking The long-run aggregate supply (LAS) curve A) has a positive slope. B) has a negative slope. C) is vertical. D) is horizontal. Answer: C Topic: Long-Run Aggregate Supply Skill: Recognition Question history: Previous edition, Chapter 10 AACSB: Reflective Thinking [Show More]

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