principlesofmacroeconomics,9e-tb1(casefairoster).docVIP

Principles of Macroeconomics, 9e - TB1 (Case/Fair/Oster) Chapter 13 Aggregate Supply and the Equilibrium Price Level 13.1 The Aggregate Supply Curve 1 Multiple Choice 1) The graph that shows the relationship between the aggregate quantity of output supplied by all the firms in an economy and the overall price level is A) the aggregate supply curve. B) the aggregate production function. C) the production possibilities frontier. D) the aggregate demand curve. Answer: A Diff: 1 Topic: The Aggregate Supply Curve Skill: Definition 2) The quantity of output supplied at different price levels is represented by the A) production function. B) aggregate demand curve. C) aggregate supply curve. D) aggregate expenditures curve. Answer: C Diff: 1 Topic: The Aggregate Supply Curve Skill: Definition 3) The aggregate supply curve A) is the sum of the individual supply curves in the economy. B) is a market supply curve. C) embodies the same logic that lies behind an individual firms supply curve. D) relates output with the price level. Answer: D Diff: 1 Topic: The Aggregate Supply Curve Skill: Conceptual AACSB: Reflective Thinking 4) It is very important to distinguish between the short run and the long run when we are discussing A) the aggregate demand. B) the aggregate expenditures. C) the aggregate supply. D) changes in the price level. Answer: C Diff: 2 Topic: The Aggregate Supply Curve Skill: Conceptual Refer to the information provided in Figure 13.3 below to answer the questions that follow. Figure 13.3 5) Refer to Figure 13.3. Between the output levels of $500 billion and $1,000 billion, the relationship between the price level and output is A) constant. B) negative. C) positive. D) indeterminate. Answer: C Diff: 1 Topic: The Aggregate Supply Curve Skill: Analytic AACSB: Analytic Skills 6) Refer to Figure