Aggregate Supply Quiz 2 (15 MCQs)

Quiz Instructions:

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1. The LRAS curve relates strongly to the production possibility frontier.

2. The current base rate of interest is

3. Labour is a derived demand and so aggregate demand will have an effect on the aggregate demand for labour and thus unemployment

4. Which one of the following is a fundamental determinant of long-run aggregate supply?

5. Investment in technology will improve efficiency:this has a short-run effect on aggregate demand and a long-run effect on aggregate supply

6. The Keynesian long run aggregate supply Curve is L-shaped

7. The total amount of goods and services produced throughout the economy

8. The long run aggregate supply curve is vertical

9. The axis on the aggregate demand curve diagrams are real GDP and the price level

10. Which of the following would shift AS in the short run but not in the long run?

11. Changes in factors of production cause the long run aggregate supply curve to shift

12. The long run aggregate supply curve has

13. A change in the price level will cause a movement along the aggregate demand curve

14. The aggregate demand curve is a similar shape to the normal micoreconomic demand curve

15. The reasons why aggregate demand may shift to the left