04 Jun Question Shifts in the Aggregate Supply Curve
Question
Shifts in the Aggregate Supply Curve
1. Which of the aggregate supply curves will shift in response to a change in the expected price level? Why?
2. Why do lower input costs increase the level of RGDP supplied at any given price level?
3. What would discovering huge new supplies of oil and natural gas do to the short-run and long-run aggregate supply curves?
4. What would happen to short-run and long-run aggregate supply curves if the government required every firm
to file explanatory paperwork each time a decision was made?
5. What would happen to the short-run and long-run aggregate supply curves if the capital stock grew and available supplies of natural resources expanded over the same period of time?
6. How can a change in input prices change the short-run aggregate supply curve but not the long-run aggregate supply curve? How could it change both long-run and short-run aggregate supply?
7. What would happen to short- and long-run aggregate supply if unusually good weather led to bumper crops of most agricultural produce?
8. If OPEC temporarily restricted the world output of oil, what would happen to short- and long-run
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