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Department
Economics
Course
Economics 1022A/B
Professor
Prof
Semester
Winter

Description
Economics Canada in the Global Environment 7e ParkinChapter 26 Aggregate Supply and Aggregate Demand261 Aggregate SupplyUse the figure below to answer the following questionsFigure 26111 Refer to Figure 2611 Which graph illustrates what happens when factor prices decrease A aB bC cD dE a and bAnswerADiff 2TopicAggregate SupplySourceStudy Guide1 2010 Pearson Education Canada2 Refer to Figure 2611 Which graph illustrates what happens when factor prices rise A aB bC cD dE a and bAnswerBDiff 2TopicAggregate Supply3 Which one of the following newspaper quotations describes a movement along an LAS curveA The decrease in consumer spending may lead to a recessionB The increase in consumer spending is expected to lead to inflation without any increase in real GDPC Recent higher wage settlements are expected to cause higher inflation this yearD Growth has been unusually high the last few years due to more women entering the labour forceE The recent tornadoes destroyed many factories in Calgary and EdmontonAnswerBDiff 3TopicAggregate Supply4 Which one of the following newspaper quotations describes a shift of only the SAS curveA The decrease in consumer spending may lead to a recessionB The increase in consumer spending is expected to lead to inflation without any increase in real GDPC Recent higher wage settlements are expected to cause higher inflation this yearD Growth has been unusually high the last few years due to more women entering the work forceE The recent tornadoes destroyed many factories in Calgary and EdmontonAnswerCDiff 2TopicAggregate Supply5 Which one of the following newspaper quotations describes a rightward shift of the LAS curveA The decrease in consumer spending may lead to a recessionB The increase in consumer spending is expected to lead to inflation without any increase in real GDPC Recent higher wage settlements are expected to cause higher inflation this yearD Growth has been unusually high the last few years due to more women entering the work forceE The recent tornadoes destroyed many factories in Calgary and EdmontonAnswerDDiff 2TopicAggregate Supply2 2010 Pearson Education Canada6 Which one of the following newspaper quotations describes a leftward shift of the LAS curveA The decrease in consumer spending may lead to a recessionB The increase in consumer spending is expected to lead to inflation without any increase in real GDPC Recent higher wage settlements are expected to cause higher inflation this yearD Growth has been unusually high the last few years due to more women entering the work forceE The recent tornadoes destroyed many factories in Calgary and EdmontonAnswerEDiff 2TopicAggregate Supply7 Which of the following does not change shortrun aggregate supplyA A change in the money wage rateB Technological changeC A change in the fullemployment quantity of labourD An increase in the quantity of capitalE A change in expected future profitsAnswerEDiff 2TopicAggregate Supply8 Complete the following sentence Potential GDPA increases as the price level risesB is the level of real GDP when unemployment is zero C increases as the quantity of money in the economy increasesD does not vary with the price level E never changes AnswerDDiff 2TopicAggregate Supply9 A vertical longrun aggregate supply curve indicates that A an increase in the price level will not expand an economys output in the long run B output rates greater than the longrun output rate are unattainableC an increase in the price level will permit the economy to achieve a higher level of output D an increase in the price level will increase technological change and economic growth E the longrun aggregate supply curve never shiftsAnswerADiff 2TopicAggregate Supply3 2010 Pearson Education Canada
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