Exam 23: Aggregate Demand and Supply Analysis

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

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

The positively sloped short-run aggregate supply curve reflects the assumption that labour prices are ________.

Everything else held constant, which of the following does not cause aggregate demand to increase?

What are the factors that can shift the aggregate demand curve to the right?

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

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?

In the long run, following a combination of a negative demand shock and a temporary negative supply shock, ________.

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 financial crisis that began in August 2007 initially had ________ effect on China but caused exports to fall by ________ percent.

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 the inflation rate in the short run.

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 United Kingdom's experience?

During the 2007-2008 financial crisis, China's economic growth slowed from over ________ percent in the first half of 2008 to under ________ percent in the second half.

A favourable supply shock causes ________ to ________.

The downward slope of the aggregate demand curve is due to ________ and ________.

The short-run aggregate supply curve is upward sloping because in the short run, costs of many factors that go into producing goods and services are ________, meaning that the price for a unit of output will ________ relative to input prices and the profit per unit will rise.

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

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

The aggregate supply curve is ________.

Everything else held constant, contractionary monetary policies will cause ________.