Exam 22: Aggregate Demand and Supply Analysis

Everything else held constant,an increase in financial frictions ________ aggregate ________.

Suppose the economy is producing at the natural rate of output.A decrease in consumer and business confidence will cause ________ in real GDP in the long run and ________ in inflation in the long run,everything else held constant.

By analyzing aggregate demand through its component parts,we can conclude that,everything else held constant,a decline in the inflation rate causes

The aggregate supply curve shows the relationship between

Suppose the economy is producing at the natural rate of output.An increase in consumer and business confidence will cause ________ in real GDP in the short run and ________ in inflation in the short run,everything else held constant.

According to aggregate demand and supply analysis,the rising oil prices coupled with the global financial crisis in 2007-2008 caused the unemployment rate to ________ and the level of real aggregate output to ________.

Suppose the economy is producing at the natural rate of output.An open market purchase of bonds by the Fed will cause ________ in real GDP in the long run and ________ in inflation in the long run,everything else held constant.

Suppose the economy is producing at the natural rate of output.An increase in consumer and business confidence will cause ________ in real GDP in the long run and ________ in inflation in the long run,everything else held constant.

According to aggregate demand and supply analysis,the negative demand shock of 2000-2004 had the effect of

Everything else held constant,if workers expect an increase in inflation,________ aggregate supply ________.

The price of a barrel of oil doubled between 2007 and the middle of 2008.To make matters worse,a financial crisis hit the U.S.economy starting in August of 2007.Which of the following is true of the Chinese experience?

Everything else held constant,a decrease in the cost of production ________ aggregate ________.

According to aggregate demand and supply analysis,the favorable supply shock of 1995-1999 had the effect of

Everything else held constant,an increase in net taxes ________ aggregate ________.

A positive supply shock causes ________ to ________.

The expectations-augmented Phillips curve implies that as expected inflation increases,nominal wages ________ to prevent real wages from ________.

Everything else held constant,aggregate demand increases when

The aggregate demand curve is the total quantity of an economy's

A decrease in the availability of raw materials that increases the price level is called a ________ shock

As of 2009,China's economy had recovered from the global recession that began in 2008.Use aggregate demand and aggregate supply analysis to explain why,and to explain the likely consequences for China of an increase in the growth rate of the global economy.