Chapter 29
is vertical
The economy's long-run aggregate supply curve:
total input cost divided by units of output.
Per-unit production cost is
the aggregate demand and supply curves intersect.
The equilibrium price level and level of real output occur where
determinants of aggregate demand.
The factors that affect the amounts that consumers, businesses, government, and foreigners wish to purchase at each price level are the
75
What percentage of the average U.S. firm's costs are accounted for by wages and salaries?
An increase in stock prices that increases consumer wealth
Which of the following would most likely shift the aggregate demand curve to the right?
leftward shift of AS curve.
Graphically, cost-push inflation is shown as a
rightward shift of the AD curve along an upsloping AS curve.
Graphically, demand-pull inflation is shown as a
changing prices and communicating them to customers.
Menu costs are the costs to firms of....
real output per unit of input.
Productivity measures:
2.
Suppose that real domestic output in an economy is 20 units, the quantity of inputs is 10, and the price of each input is $4. Answer the following question on the basis of this information.
production costs decline as real output increases
The aggregate demand curve is downsloping because
production costs decrease as real output rises
The aggregate demand curve is downsloping because...
upward and to the right
The aggregate supply curve (short-run) slopes....
the three distinct ranges of the aggregate supply curve.
The determinants of aggregate supply explain...
shift the aggregate supply curve to the right
other things equal, an improvement in productivity
