09-03-2009 105118 PM

09-03-2009 105118 PM - E supply of labour inputs in the...

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me . : JLTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The aggregate expenditure is .the price level. 1) f^ A) the same as B) directly dependent on C) exactly proportional to D) unaffected by E) inversely dependent on 2) A change in the price level causes a A) movement along both the AE and AD curves. , B) shift in the AE curve and a movement along the AD curve. C) movement along AE but does not affect the AD curve. D) shift in both the AE and AD curves. E) movement along the AE curve and a shift in the AD curve. r 3) Aggregate supply refers to the 3) A) potential output at each possible labour force. B) decisions of firms to decrease inputs in order to produce outputs. C) total output of goods firms wish to produce at each price level. D) effects of increases in input prices on output.
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Unformatted text preview: E) supply of labour inputs in the economy. ^—\ 4) A decrease in short run aggregate supply is 4) A) caus'ed by a decrease in the price level. B) reflected in a shift to the right in the AS curve. C) reflected in a shift to the left in the AS curve. D) caused by an increase in the price level. E) interpreted to mean that more national output will be supplied at any given price level. 5) Over the horizontal range of the short run AS, a rightward shift of the AD curve will result in 5) A) a decrease in both real GDP and prices. B) an increase in real GDP and no change in prices. C) a decrease in real GDP but no change in prices. D) an increase in prices and no change in real GDP. E) an increase in both real GDP and prices....
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