Exam 23: Aggregate Demand and Supply Analysis

Everything else held constant, an increase in government spending ________ aggregate ________.

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

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

The long-run aggregate supply curve is

Everything else held constant, when financial frictions increase, the real cost of borrowing ________ so that planned investment spending ________ at any given inflation rate.

Everything else held constant, a change in workers' expectations about inflation will cause ________ to change.

The aggregate supply curve is the total quantity of

Suppose the U.S. economy is producing at the natural rate of output. An appreciation of the U.S. dollar will cause ________ in real GDP in the short run and ________ in inflation in the short run, everything else held constant. (Assume the appreciation causes no effects in the supply side of the economy.)

The long-run rate of unemployment to which an economy always gravitates is the

Which of the followings does not shift the short-run aggregate supply curve?

Everything else held constant, a decrease in planned investment expenditure ________ aggregate ________.

Assuming the economy is starting at the natural rate of output and everything else held constant, the effect of ________ in aggregate ________ is a rise in both inflation and output in the short-run, but in the long-run the only effect is a rise in inflation.

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?

By looking at aggregate demand via its component parts, we can conclude that the aggregate demand curve is downward sloping because

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

A negative supply shock causes ________ to ________.

Suppose the U.S. economy is producing at the natural rate of output. An appreciation of the U.S. dollar will cause ________ in real GDP in the short run and ________ in inflation in the long run, everything else held constant. (Assume the appreciation causes no effects in the supply side of the economy.)

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 short run and ________ in inflation in the short run, everything else held constant.

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 the the short run and ________ in inflation in the short run, everything else held constant.

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