?A short-run aggregate supply curve (SRAS) assumes:
A. ?the CPI is fixed.
B. ?each point on the SRAS is potential real GDP.
C. fixed or sticky nominal wages.
D. ?nominal wages vary directly with price changes.
Answer: C
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If the short-run aggregate supply curve is shifting down repeatedly, it is rather likely that ________
A) output is declining repeatedly, relative to potential output B) the long-run aggregate supply curve is shifting to the left C) negative price shocks are recurring D) all of the above E) none of the above
When the government establishes a minimum price for an agricultural product above the equilibrium price, the government is creating a(n)
A) price ceiling. B) elevated price. C) price floor. D) surplus price.
The price of a seller's product in perfect competition is determined by
A) the individual seller. B) a few of the sellers. C) market demand and market supply. D) the individual demander.
Steps in the transmission of monetary policy are
A) Congress increases the budget deficit, which increases the money supply, which increases aggregate supply. B) Congress increases the money supply, which lowers the interest rate, and leads to an increase in aggregate demand. C) the Federal Reserve lowers the federal funds rate, which lowers the real interest rate, and leads to an increase in aggregate demand. D) the Federal Reserve increases government expenditures on goods and services, leading to an increase in aggregate demand. E) Congress increases government expenditures on goods and services, leading to an increase in aggregate demand.