This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Aggregate > Aggregate Supply – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Aggregate Supply Quiz 2 (18 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A sizable decrease in the price of oil is an example of a A) Supply shock. B) Stagflation. C) Stagnation. D) Demand shock. Show Answer Correct Answer: A) Supply shock. 2. People who are actively looking for a job but aren't employed A) Unemployed. B) CPI. C) Labor Force. D) Underemployed. Show Answer Correct Answer: A) Unemployed. 3. The LRAS curve relates strongly to the production possibility frontier. A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 4. The current base rate of interest is A) 1%. B) 0.1%. C) 0.5%. D) 0%. Show Answer Correct Answer: B) 0.1%. 5. Labour is a derived demand and so aggregate demand will have an effect on the aggregate demand for labour and thus unemployment A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 6. Which one of the following is a fundamental determinant of long-run aggregate supply? A) Real national output. B) The output gap. C) The multiplier. D) The institutional structure of the economy. Show Answer Correct Answer: D) The institutional structure of the economy. 7. Investment in technology will improve efficiency:this has a short-run effect on aggregate demand and a long-run effect on aggregate supply A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 8. The Keynesian long run aggregate supply Curve is L-shaped A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 9. The total amount of goods and services produced throughout the economy A) Aggregate Demand. B) Inflation. C) Deflation. D) Aggregate Supply. Show Answer Correct Answer: D) Aggregate Supply. 10. The long run aggregate supply curve is vertical A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 11. The axis on the aggregate demand curve diagrams are real GDP and the price level A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 12. The study of the economy as a whole and how major sectors of the economy interact. A) Unemployed. B) Incentives. C) Inflation. D) Macroeconomics. Show Answer Correct Answer: D) Macroeconomics. 13. Which of the following would shift AS in the short run but not in the long run? A) Decrease in capital stock. B) Improvements in technology. C) Increase in wages. D) Increase in capital stock. Show Answer Correct Answer: C) Increase in wages. 14. Changes in factors of production cause the long run aggregate supply curve to shift A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 15. The long run aggregate supply curve has A) A positive slope. B) A negative slope. C) A zero slope. D) An infinite slope. Show Answer Correct Answer: D) An infinite slope. 16. A change in the price level will cause a movement along the aggregate demand curve A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 17. The aggregate demand curve is a similar shape to the normal micoreconomic demand curve A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 18. The reasons why aggregate demand may shift to the left A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. ← PreviousRelated QuizzesMacroeconomics QuizzesEconomics QuizzesAggregate Supply Quiz 1Aggregate Demand Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books