35 - CHAPTER 35 Extending the Analysis of Aggregate Supply...

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35 Extending the Analysis of Aggregate Supply 1. In terms of aggregate supply, a period in which nominal wages and other resource prices are unresponsive to price-level changes is called the: A) long run. B) short run. C) immediate market period. D) very long run. Ans: 2. In terms of aggregate supply, a period in which nominal wages and other resource prices are fully responsive to price-level changes is called the: A) long run. B) short run. C) immediate market period. D) very long run. Ans: Use the following to answer questions 35-40: 35. Refer to the above diagram. The initial aggregate demand curve is AD 1 and the initial aggregate supply curve is AS 1 . Demand-pull inflation in the short run is best shown as: A) a shift of the aggregate demand curve from AD 1 to AD 2 . B) a move from d to b to a . C) a move directly from d to a . D) a shift of the aggregate supply curve from AS 1 to AS 2 . Ans:
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This note was uploaded on 03/29/2010 for the course EDUCATION 111 taught by Professor Jones during the Spring '10 term at Bowling Green.

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35 - CHAPTER 35 Extending the Analysis of Aggregate Supply...

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