Exam 22: Aggregate Demand and Supply Analysis

Which of the following increases aggregate supply in the short-run,everything else held constant?

Everything else held constant,aggregate demand increases when

One way to derive aggregate demand is by looking at its four component parts,which are

The long-run aggregate supply curve shifts to the right when there is

If workers demand and receive higher real wages (a successful wage push),the cost of production ________ and the short-run aggregate supply curve shifts ________.

Suppose the economy is producing at the natural rate of output.Assuming a fixed natural rate of output and everything else held constant,the development of a new,more productive technology will cause ________ in the unemployment rate in the long run and ________ in inflation in the short run.

The Phillips curve indicates that when the labor market is ________,production costs will ________ and aggregate supply decreases.

This theory views shocks to tastes (workers' willingness to work,for example)and technology (productivity)as the major driving forces behind short-run fluctuations in the business cycle because these shocks lead to substantial short-run fluctuations in the natural rate of output.

Everything else held constant,an increase in the cost of production ________ aggregate ________.

Everything else held constant,a decrease in net taxes ________ aggregate ________.

Suppose the economy is producing at the natural rate of output.Assuming a fixed natural rate of output and everything else held constant,the development of a new,more productive technology will cause ________ in the unemployment rate in the short run and ________ in inflation in the short run.

Everything else held constant,a balanced budget increase in government spending (that is,an increase in government spending that is matched by an identical increase in net taxes)will

The long-run aggregate supply curve is

Everything else held constant,when actual output exceeds the natural rate of output ________ aggregate supply ________.

________ flexible wages and prices imply that the short-run aggregate supply curve is ________.

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

According to aggregate demand and supply analysis,the negative supply shocks of 1973-1975 and 1978-1980 had the effect of

The aggregate supply curve is the total quantity of

Everything else held constant,an increase in planned investment expenditure ________ aggregate ________.

Everything else held constant,a decrease in government spending ________ aggregate ________.