AP Macroeconomics Practice Quiz: Short-Run Aggregate Supply (SRAS)

Written by AP Content Team, Verified for 2026 AP Exams, Last updated: May 2026

Test your understanding with short quizzes. This quiz has 15 questions to check your progress.

Question 1 of 15

What does the short-run aggregate supply (SRAS) curve represent?

A)The relationship between the price level and the quantity of goods and services supplied in an economy.B)The relationship between interest rates and the quantity of goods and services demanded.C)The total value of all goods and services produced in an economy over a long period.D)The trade-off between government spending and taxation.

All Questions (15)

What does the short-run aggregate supply (SRAS) curve represent?

A) The relationship between the price level and the quantity of goods and services supplied in an economy.

B) The relationship between interest rates and the quantity of goods and services demanded.

C) The total value of all goods and services produced in an economy over a long period.

D) The trade-off between government spending and taxation.

Correct Answer: A

According to the provided text, 'The short-run aggregate supply (SRAS) curve describes the relationship between the price level and the quantity of goods and services supplied in an economy.'

According to the provided text, why is the short-run aggregate supply (SRAS) curve upward-sloping?

A) Because of increasing government regulation.

B) Because of sticky wages and prices.

C) Because of the law of diminishing marginal utility.

D) Because of changes in consumer demand.

Correct Answer: B

The text explicitly states, 'The SRAS curve is upward-sloping because of sticky wages and prices.' This means that as the overall price level rises, firms' revenues increase, but their wage costs do not rise as quickly, incentivizing them to increase production.

Which of the following would cause a shift in the short-run aggregate supply (SRAS) curve?

A) An increase in the overall price level.

B) A decrease in consumer spending.

C) A change in inflationary expectations.

D) An increase in the quantity of output supplied.

Correct Answer: C

The provided content states, 'Any factor that causes production costs to change, such as a change in inflationary expectations, will cause the SRAS curve to shift.' A change in the price level causes a movement along the curve, not a shift.

A movement up along the short-run aggregate supply (SRAS) curve implies which of the following, holding the labor force constant?

A) A decrease in the price level and an increase in unemployment.

B) An increase in the price level and an increase in unemployment.

C) An increase in the price level and a decrease in unemployment.

D) A decrease in the price level and a decrease in unemployment.

Correct Answer: C

The text explains that 'Moving along the SRAS curve, an increase in the price level is associated with an increase in output, which means employment must correspondingly rise. With the labor force held constant, unemployment will fall.'

The short-run trade-off between inflation and unemployment is demonstrated by:

A) A shift in the SRAS curve to the left.

B) A shift in the SRAS curve to the right.

C) A movement along the SRAS curve.

D) The vertical slope of the long-run aggregate supply curve.

Correct Answer: C

The content states, 'Moving along the SRAS curve... there is a short-run trade-off between inflation and unemployment.' As the price level (inflation) increases, output increases, and unemployment falls.

Which of the following best describes the slope of the short-run aggregate supply (SRAS) curve?

A) Vertical

B) Horizontal

C) Downward-sloping

D) Upward-sloping

Correct Answer: D

The provided text clearly states, 'The SRAS curve is upward-sloping because of sticky wages and prices.'

If businesses and workers expect higher inflation in the future, how will this affect the short-run aggregate supply (SRAS) curve and why?

A) It will shift to the right because production costs decrease.

B) It will shift to the left because production costs increase.

C) There will be a movement up along the curve because the price level rises.

D) There will be a movement down along the curve because output falls.

Correct Answer: B

The text states that a change in inflationary expectations causes the SRAS curve to shift because it changes production costs. If higher inflation is expected, workers will demand higher nominal wages, and suppliers will raise input prices, increasing production costs for firms and causing the SRAS curve to shift to the left.

A change in which of the following will cause a movement along the short-run aggregate supply (SRAS) curve rather than a shift of the curve?

A) The overall price level.

B) Inflationary expectations.

C) The cost of key inputs like oil.

D) Productivity of labor.

Correct Answer: A

The SRAS curve plots the relationship between the price level and the quantity of output supplied. Therefore, a change in the price level is represented as a movement along the curve. The other options are factors that change production costs and would cause the entire curve to shift.

The concept of 'sticky wages' helps to explain why:

A) The SRAS curve shifts when technology improves.

B) Firms increase output when the price level increases in the short run.

C) Unemployment and inflation are unrelated in the short run.

D) The SRAS curve is vertical in the long run.

Correct Answer: B

Sticky wages mean that nominal wages do not adjust immediately to changes in the price level. When the price level rises, firms' revenues increase while their labor costs (wages) remain relatively fixed. This increases profitability per unit, incentivizing them to increase the quantity of output supplied, which explains the upward slope of the SRAS curve.

If an economy moves down along its short-run aggregate supply (SRAS) curve, what is the corresponding impact on output and employment?

A) Output increases and employment increases.

B) Output decreases and employment decreases.

C) Output increases and employment decreases.

D) Output decreases and employment increases.

Correct Answer: B

Moving down along the SRAS curve means the price level is falling. A lower price level, combined with sticky wages, reduces firms' profitability, leading them to decrease the quantity of goods and services they supply. A decrease in output requires fewer workers, so employment decreases.

The determinants of the short-run aggregate supply (SRAS) curve are primarily factors that affect:

A) Consumer confidence.

B) Government spending.

C) Production costs.

D) Interest rates.

Correct Answer: C

The provided text specifies that 'Any factor that causes production costs to change... will cause the SRAS curve to shift.' These factors are the determinants of the SRAS curve's position.

The short-run relationship between inflation and unemployment, as implied by the SRAS curve, suggests that:

A) Policies designed to lower inflation will also lower unemployment in the short run.

B) A lower price level is associated with a lower unemployment rate.

C) To reduce unemployment, an economy may have to accept a higher price level in the short run.

D) There is no relationship between the price level and unemployment in the short run.

Correct Answer: C

The text describes a 'short-run trade-off between inflation and unemployment.' Moving up along the SRAS curve, a higher price level (inflation) is associated with higher output and lower unemployment. This implies that policies stimulating output might lower unemployment at the cost of higher inflation.

When the quantity of goods and services supplied increases as a result of a higher price level, this is represented graphically as a:

A) Rightward shift of the SRAS curve.

B) Leftward shift of the SRAS curve.

C) Movement up along the SRAS curve.

D) Movement down along the SRAS curve.

Correct Answer: C

The SRAS curve shows the quantity supplied at different price levels. An increase in the price level leading to an increase in quantity supplied is a movement from a lower point to a higher point on the same curve.

Which of the following scenarios is consistent with the 'sticky prices' explanation for the upward-sloping SRAS curve?

A) A firm instantly raises its menu prices in response to an increase in aggregate demand.

B) A firm keeps its prices the same for a period despite a rise in the overall price level, leading it to increase production to meet higher demand.

C) A firm lowers its wages immediately when the price level falls.

D) A firm's production costs change at the same rate as the overall price level.

Correct Answer: B

Sticky prices mean that some firms do not or cannot change their prices immediately in response to a change in the price level. If the overall price level rises, a firm with sticky (unchanged) prices becomes relatively cheaper, sees an increase in demand for its products, and therefore increases its output.

Holding the labor force constant, an increase in employment is a direct consequence of:

A) A leftward shift of the SRAS curve.

B) A decrease in the overall price level.

C) An increase in the quantity of output supplied.

D) An increase in inflationary expectations.

Correct Answer: C

The text states that 'an increase in the price level is associated with an increase in output, which means employment must correspondingly rise.' To produce more output, firms need to hire more workers, thus increasing employment.