1. The short-run aggregate supply curve shows:
a. What happens to output in an economy as the price level changes, holding all other determinants of real GDP constant.
b. What happens to output in an economy when the government spends more money.
c. How firms respond to changes in interest rates.
d. The relationship between the price level and aggregate expenditure.
2. Which of the following are assumed to remain unchanged along a given short-run aggregate supply curve? Check all that apply.
The position of the aggregate demand curve
Resource prices
Real GDP
Institutions, such as patent laws and tax systems, that make up the "rules of the game"
3. The term short-run macroeconomic equilibrium refers to:
a. The situation when aggregate price level is in equilibrium.
b. The situation when the aggregate supply curve and the aggregate demand curve as used together to analyze economic fluctuations.
c. The situation when the quantity of aggregate output produced in the short-run is in equilibrium.
d. The situation when the quantity of aggregate output supplied is equal to the quantity demanded.
4. In macroeconomics, the term long run refers to:
a. A period of 1 year.
b. A period of 10 years.
c. A period of time in which some input prices and wages are fixed.
d. A period of time long enough for all input prices and wages to be renegotiated.

The short run aggregate supply curve also referred to as the upward sloping aggregate supply indicates the positive relationship that is between the price level and the real GDP during the short run.

2. Which of the following are assumed to remain unchanged along a given short-run aggregate supply curve?

Institutions, such as patent laws and tax systems, that make up the "rules of the game."

The institutions that make up the rule of the game will not change easily. Those that can change easily in the short run are price level, the aggregate demand curve, and resource.

3. The term short-run macroeconomic equilibrium refers to: The situation when the quantity of aggregate output supplied is equal to the quantity demanded

The short-run macroeconomic equilibrium is a situation that is achieved when the aggregate demand i.e total demand and the aggregate supply i.e total supply are both equal in the short term.

4. In macroeconomics, the term long run refers to: A period of time long enough for all input prices and wages to be renegotiated.

The long-run is a period of time whereby all the factors of production and the costs are variable. Firms in the long run will be able to adjust their costs.

mbadillo mbadillo · Answer 2 · 2021-04-17T00:00:39+02:00

mbadillo mbadillo

17-04-2021

Answer:

1. The short-run aggregate supply curve shows: What happens to output in an economy as the actual price level changes, holding all other determinants of real GDP constant

Explanation:

The short-run aggregate supply curve shows the relationship between the actual price level and the amount of output supplied by firms in the short run, holding all other determinants of real GDP constant.

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