1 / 1 ptsQuestion 45Assuming that natural gas for firm X is an important input to the productionprocess, an increase in the availability of natural gas that lowers the price ofnatural gas, will result in a leftward shift of firm X's supply curve. 1 / 1 ptsQuestion 46According to the lecture on the cyclical properties of the aggregate supply curve, Iargued that aggregate demand side policy works better, in terms of influencingoutput, when the economy is operating at near full employment output relative towhen the economy is operating at levels of output well below full employment. Homework 04: [19FA] ECON 104, Sec 003: Macroeconomic Analysis ... 19 of 25 10/20/2019, 9:22 PM
False 1 / 1 pts Question 47 If labor markets become “loose” and wages fall, all else constant, the short run aggregate supply curve will shift to the left. False 1 / 1 pts Question 48The more 'sticky' nominal wages and other input costs are, the steeper the slope ofthe aggregate supply curve and therefore, the less effective demand side policiesin terms of effecting real output. 1 / 1 ptsQuestion 49If the US economy is growing faster than the rest of the world, then we wouldexpect a surge in US exports. Homework 04: [19FA] ECON 104, Sec 003: Macroeconomic Analysis ... 20 of 25 10/20/2019, 9:22 PM
1 / 1 ptsQuestion 50Suppose that expected inflation is 5% and thus, nominal wages rise, along with allother input prices by 5%. Suppose also, that actual inflation over this period wasonly 2%. In terms of the behavior of the short-run aggregate supply curve, it wouldshift up given the expectations of higher inflation and then shift downward to adjustfor the actual rate of inflation. 1 / 1 pts Question 51The more sensitive consumption is to real wealth, the steeper the aggregatedemand curve. 1 / 1 ptsQuestion 52During the Great Recession, we argued that the aggregate expenditure curveshifted downward and the short-run aggregate supply curve and the aggregatedemand both shifted to the left. Homework 04: [19FA] ECON 104, Sec 003: Macroeconomic Analysis ... 21 of 25 10/20/2019, 9:22 PM
1 / 1 pts Question 53Anything that shifts the investment demand curve to the right will also shift theaggregate demand curve to the right. 1 / 1 pts
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