The steeper the short-run aggregate supply curve, _____.

The steeper the short-run aggregate supply curve, _____.
 a. the steeper the aggregate demand curve
 b. the larger the value of the spending multiplier
 c. the larger the budget surplus
 d. the larger the impact of a shift in aggregate demand on the equilibrium price level
  e. the larger the impact of a shift in aggregate demand on the equilibrium output level

QUESTION 2

The final market value of a good is _____.
 a. the sum of the value added at all stages of production
 b. the value added at one stage of production
 c. greater than the sum of all the values added at all stages of production
  d. less than the sum of all the values added at all stages of production
  e. the value added at the final stage of production

QUESTION 3

If the price of labor falls, we can expect:
 a. demand for labor will increase.
  b. quantity demanded of labor will increase.
  c. demand for labor will decrease.
  d. quantity demanded of labor will decrease.
  e. marginal factor cost to rise in a competitive market.

QUESTION 4

A change in government purchases has the greatest effect on the economy in the short run when _____.
 a. the aggregate demand curve is relatively flat.
 b. the aggregate demand curve is relatively steep.
 c. the short-run aggregate supply curve is relatively flat.
  d. the aggregate demand curve is vertical.
 e. the short-run aggregate supply curve is vertical.

QUESTION 5

The value added by a firm is defined as:
 a. the sum of all income earned by the workers in the firm.
 b. the firm's actual investment minus planned investment.
 c. the value of the product manufactured by the firm plus the transaction costs incurred by the firm.
  d. the value of the firm's product minus the cost of materials it bought from other firms.
 e. the increase in the value of the firm's stock or bond.

QUESTION 6

An advance in technology which increases labor productivity will shift the:
 a. labor demand curve to the left.
  b. MFC curve to the left.
  c. MP curve downward.
  d. labor demand curve to the right.
  e. product demand to the right.

QUESTION 7

If the economy is already producing at its potential, _____.
 a. the spending multiplier equals 1/(1 - MPC) in the long run
 b. the spending multiplier is less than 1/(1 - MPC) in the long run
  c. the spending multiplier is more than 1/(1 - MPC) in the long run
  d. the spending multiplier equals zero in the long run
 e. the aggregate demand curve is horizontal