the economics of money, banking, and financial markets

749 $

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15. 
    

    Everything else held constant, when actual output exceeds the natural rate of output
    ____ aggregate supply ____.
    A) short-run; decreases
    B) short-run; increases
    C) long-run; increases
    D) long-run; decreases
    Answer: A
    Diff: 2 Type: MC Page Ref: 577 - 578
    Skill: Recall
    Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
    of aggregate output and the inflation rate

    
    


16. 
    

    If workers demand and receive higher real wages, the cost of production ____ and the
    short-run aggregate supply curve shifts ____.
    A) rises; leftward
    B) rises; rightward
    C) falls; leftward
    D) falls; rightward
    Answer: A
    Diff: 2 Type: MC Page Ref: 580
    Skill: Applied
    Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
    of aggregate output and the inflation rate

    
    


17. 
    

    Everything else held constant, if workers expect an increase in the price level, ____
    aggregate supply ____.
    A) long-run; increases
    B) long-run; decreases
    C) short-run; decreases
    D) short-run; increases
    Answer: C
    Diff: 2 Type: MC Page Ref: 580
    Skill: Recall
    Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
    of aggregate output and the inflation rate