Try out our new practice tests completely free!

# Macroeconomics Australia Study Set 1

## Quiz 11 :Aggregate Supply and Aggregate Demand

Which of the following does NOT affect potential GDP?
Free
Multiple Choice

D

Tags
Choose question tag
-If the money wage rate and the price level both rise by the same proportion, then, in the figure above, the potential GDP line ________, and the aggregate supply curve ________.
Free
Multiple Choice

E

Tags
Choose question tag
The aggregate supply curve shows the relationship between
Free
Multiple Choice

A

Tags
Choose question tag
Which of the following changes aggregate supply and shifts the aggregate supply curve? i. Change in the price level ii. Change in potential GDP iii. Change in the money wage rate
Multiple Choice
Tags
Choose question tag
A rise in the price level brings a ________ in the real wage rate that ________ profits which leads to ________ production.
Multiple Choice
Tags
Choose question tag
If the price level falls and the money wage rate does not change, some firms ________ and there is ________.
Multiple Choice
Tags
Choose question tag
Moving along the AS curve, when the price level increases, the
Multiple Choice
Tags
Choose question tag
-Based on the figure above, the aggregate supply curve shifts rightward and the potential GDP line does NOT change when
Multiple Choice
Tags
Choose question tag
During 2018, a country reports that its price level fell and the money wage rate did not change. These changes led to
Multiple Choice
Tags
Choose question tag
If profits are high because the price level rose,
Multiple Choice
Tags
Choose question tag
Changes in which of the following do NOT shift the AS curve? i. The price level ii. Potential GDP iii. The money wage rate
Multiple Choice
Tags
Choose question tag
If the price of widgets is $2 and the real wage is$20 per hour then the firm must sell 10 widgets to cover the cost of an hour of labour. If the price of widgets rises to \$4, how many widgets must the firms sell to cover the cost of an hour of labour?
Multiple Choice
Tags
Choose question tag
The line showing potential GDP is a vertical straight line because
Multiple Choice
Tags
Choose question tag
Along the aggregate supply curve, the quantity of real GDP supplied increases when the price level rises because
Multiple Choice
Tags
Choose question tag
The aggregate supply curve is a(n) ________ curve because it represents the relationship between price level and the quantity of real GDP supplied, two items that are ________ correlated.
Multiple Choice
Tags
Choose question tag
Which of the following shifts the aggregate supply curve rightward? i. The money wage rate rises. ii. Potential GDP increases. iii. Government expenditure on goods and services increases.
Multiple Choice
Tags
Choose question tag
Over the business cycle, factors such as the quantity of capital, human capital and technology
Multiple Choice
Tags
Choose question tag
If the price level increases from 110.0 to 115.0, the quantity of
Multiple Choice