Module 28 Aggregate supply
Which is TRUE with respect to the short-run aggregate supply and the long-run aggregate supply?
The economy can be on both curves simultaneously.
The aggregate supply curve shows the relationship between the aggregate price level and:
aggregate output supplied
According to the short-run aggregate supply curve, when the _________ rises, the quantity of _________ rises.
aggregate price level; aggregate output supplied
The long-run aggregate supply curve is vertical because in the long run:
all prices are flexible.
A rise in labor productivity will most likely result in a(n):
increase in short-run aggregate supply.
In the long run, the aggregate price level has:
no effect on the quantity of aggregate output.
An upward-sloping short-run aggregate supply curve indicates that increases in:
the overall price level will increase the amount of aggregate output supplied by firms.
The short-run aggregate supply curve slopes upward because of:
wage and price stickiness.