Baims-1644406705 13 MLF Altmaryn PDF

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‫حصيحة ‪%011‬‬
Aggregate Demand and Aggregate Supply Analysis
Chapter 20
EXERCISES
Matching Questions
1. 1.Aggregate demand and aggregate supply model A

2. 2.Aggregate demand (AD) curve C
3. 3.Long-run aggregate supply (LRAS) curve D
4. 4.Short-run aggregate supply (SRAS) curve B
A. A model that explains short-run fluctuations in real GDP and the price level.
B. A curve that shows the relationship in the short run between the price level and the
quantity of real GDP supplied by firms.
C. A curve that shows the relationship between the price level and the quantity of real GDP
demanded by households, firms, and the government.
D. D.A curve that shows the relationship in the long run between the price level and the
quantity of real GDP supplied
Multiple-Choice Questions
1) The supply of real GDP is a function of (D)
A) The total expenditures of consumers, investors and government.

B) The sum of wages, salaries, corporate profits, rents and interest.
C) Only the state of technology.
D) The quantities of labor, capital and the state of technology.
2) The quantity of real GDP supplied depends on the (C)
A) level of aggregate demand.

B) quantity of capital, bonds, and stocks.
C) quantity of labor, the quantity of capital, and the state of technology.
D) price level, the unemployment rate, and the quantity of government expenditures on
goods and services.
3) An aggregate supply curve depicts the relationship between (C)
1
A) the price level and nominal GDP.

B) household expenditures and household income.
C) the price level and the aggregate quantity supplied.
D) the price level and the aggregate quantity demanded.
4) When talking about aggregate supply, it is necessary to (C)
A) focus on the short run.

B) focus on the long run.
C) distinguish between long-run aggregate supply and short-run aggregate supply.
D) distinguish between long-run full employment and short-run full-employment.
5) We distinguish between the long-run aggregate supply curve and the short-run aggregate
supply curve. In the long run (D)
A) technology is fixed but not in the short run.

B) the price level is constant but in the short run it fluctuates.
C) the aggregate supply curve is horizontal while in the short run it is upward sloping.
D) real GDP equals potential GDP.
5) In the macroeconomic long run, (D)
A) GDP always is below potential GDP.

B) there is full employment with no unemployment.
C) output always is above potential GDP.
D) there is full employment and real GDP is equal to potential GDP.
7)In the macroeconomic long run, (D)
A) real GDP equals potential GDP.

B) the economy is at full employment.
C) regardless of the price level, the economy is producing at potential GDP.
D) All of the above are correct.
8) When the labor market is int full employment, (A)
A) real GDP equals potential GDP.

B) the price level is stable.
C) the price level equals potential prices.
D) the SAS curve is horizontal.
9) The long-run aggregate supply curve is vertical because (C)
A) at full employment prices are stable.

B) there is no cyclical inflation.
C) potential GDP is independent of the price level.
D) the money wage rate increases faster than the price level.
10) In the short-run (A)
A) the aggregate supply curve is upward sloping.

B) real GDP is always equal to potential GDP.
C) the money wage rate can change.
D) the price level does not change.
2
11) The aggregate demand curve shows (B)
A) total expenditures at different levels of national income.

B) the quantity of real GDP demanded at different price levels.
C) that real income is directly (positively) related to the price level.
D) All of the above answers are correct.
12) The AD curve shows the sum of (C)

A) the price level, employment, and real GDP.
B) consumption expenditure, investment, and real GDP.
C) consumption expenditure, investment, government expenditures on goods and services, and net exports.
D) consumption expenditure, investment, the price level, and real GDP.
13) The aggregate demand curve (A)

A) has a negative slope.
B) has a positive slope.
C) is vertical.
D) is horizontal.
14) Aggregate demand is the relationship between the quantity of real GDP demanded and the (A)
A) price level
B) money wage rate
C) real wage rate
D) nominal GDP demanded
15) Moving along the aggregate demand curve, a decrease in the quantity of real GDP demanded is a result of
(A)
A) an increase in the price level.
B) a decrease in the price level.
C) an increase in income.
D) a decrease in income.
16) Other things constant, the economy's aggregate demand curve shows that (c)
A) as the price level falls, real GDP decreases.

B) any change in the price level shifts the aggregate demand curve.
C) the quantity of real GDP demanded decreases when the price level rises.
D) the quantity of real GDP demanded, and the price level are not related.
17) Which of the following changes while moving along the aggregate demand curve? (B)
A) future incomes of households
B) the price levels
C) the amount of money in the economy
D) future profits from investment projects
18) Which of the following changes would NOT shift the aggregate demand curve? (D)
A) a change in fiscal policy

B) a change in monetary policy
C) a change in expectations about future income
D) an increase in technology
19) Aggregate demand increases when (D)

A) foreign incomes fall.
B) interest rates rise.
3
C) the exchange rate rises.

D) None of the above answers is correct.
20) Which of the following does NOT shift the aggregate demand curve? (C)
A) a decrease in the quantity of money
B) an increase in investment
C) an increase in the price level
D) a decrease in taxes

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‫هذه الامترين عبارة عن حلول‬

‫الاساتذة لكن هذا اليعين اهنا‬

1. 1.Aggregate demand and aggregate supply model A

1) The supply of real GDP is a function of (D)

A) The total expenditures of consumers, investors and government.

2) The quantity of real GDP supplied depends on the (C)

A) level of aggregate demand.

3) An aggregate supply curve depicts the relationship between (C)

A) the price level and nominal GDP.

4) When talking about aggregate supply, it is necessary to (C)

A) focus on the short run.

A) technology is fixed but not in the short run.

5) In the macroeconomic long run, (D)

A) GDP always is below potential GDP.

7)In the macroeconomic long run, (D)

A) real GDP equals potential GDP.

8) When the labor market is int full employment, (A)

A) real GDP equals potential GDP.

9) The long-run aggregate supply curve is vertical because (C)

A) at full employment prices are stable.

10) In the short-run (A)

A) the aggregate supply curve is upward sloping.

11) The aggregate demand curve shows (B)

A) total expenditures at different levels of national income.

12) The AD curve shows the sum of (C)

13) The aggregate demand curve (A)

A) as the price level falls, real GDP decreases.

A) a change in fiscal policy

19) Aggregate demand increases when (D)

C) the exchange rate rises.

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