Exam 8: Aggregate Demand and Aggregate Supply

The short-run aggregate supply curve is

The real balance effect is the change in

A rise in foreign real national income tends to raise U.S.__________,shifting the U.S.AD curve to the __________.

In a two-country world,an increase in foreign input prices,ceteris paribus,

An increase in labor's productivity will cause the SRAS curve to shift __________ and the price level to __________.

Suppose the real exchange rate of 105 Japanese yen to the dollar moves to 115 yen to the dollar.The dollar has _________________,making Japanese goods __________ expensive for Americans.

A fall in the price level changes the purchasing power of money.This is relevant to the __________ effect.

A depreciation of the U.S.dollar tends to __________ U.S.net exports and shift the U.S.AD curve to the __________.

The expectation of lower future prices is a

Which of the following factors can shift the AD curve?

Suppose a drop in stock prices makes people feel less wealthy.This would cause __________ the economy's AD curve.

The worker-misperception explanation of the SRAS curve is used to explain why

If the nominal wage is $12 per hour and the price level (as measured by a price index)is 2,it follows that the real wage is _________ per hour.

Which set of changes is definitely predicted to lower Real GDP in the short run?

If consumption increases,

A decrease in the price of electricity will cause

Exhibit 8-2 -Refer to Exhibit 8-2. Based on the given change,what word (rises or falls)should go in blank (9)and blank (10),respectively,to summarize the resulting impact on short run equilibrium?

The level of Real GDP and the price level always have a direct relationship.

__________ identifies the level of Real GDP the economy produces when all economywide adjustments have taken place and there are no misperceptions on the part of workers.

Some of the factors that can shift the short-run aggregate supply curve can also cause a shift in the long-run aggregate supply curve.