Exam 8: Aggregate Demand and Aggregate Supply

The nominal wage is $40 an hour and the price level as measured by a price index is 2.00.If the nominal wage falls to $30 and the price index declines to 1.50,according to the worker misperception explanation of the upward-sloping SRAS curve,workers will initially perceive the

If wages are "sticky",a decline in the price level will

A short-run aggregate supply curve shows the

Starting from short-run equilibrium,the following occurs: the money supply increases and labor productivity increases.What is the effect on the price level and Real GDP in the short run?

Velocity is the average number of times a dollar is spent to buy

Part of the story of the interest rate effect is that a lower price level causes __________ in the supply of credit,which then causes the interest rate to __________.

Greater wealth makes people _____________ willing to spend,causing __________ the economy's AD curve.

Exhibit 8-2 -Refer to Exhibit 8-2. Based on the given change,what word (rises or falls)should go in blank (7)and blank (8),respectively,to summarize the resulting impact on short run equilibrium?

When wage rates rise the short-run aggregate supply curve shifts to the right.

Exhibit 8-3 -Refer to Exhibit 8-3. A movement from point A to point B on AD? would have been the result of

A business firm's profitability is based in part on the

Exhibit 8-2 -Refer to Exhibit 8-2. Based on the given change,what word (rises or falls)should go in blank (5)and blank (6),respectively,to summarize the resulting impact on short run equilibrium?

As the price level falls,ceteris paribus,people holding some of their wealth in monetary form become

Exhibit 8-4 -Refer to Exhibit 8-4. A movement from point A to point B on SRAS? would have been the result of

Starting from short-run equilibrium,the following occurs: personal income taxes are cut,business taxes are cut,and labor productivity rises.What is the effect on the price level and Real GDP in the short run?

Which of the following will cause a movement from one point on an AD curve to another point on the same AD curve?

Exhibit 8-2 -Refer to Exhibit 8-2. Based on the given change,what word (rises or falls)should go in blank (1)and blank (2),respectively,to summarize the resulting impact on short run equilibrium?

Suppose Americans buy inputs from foreigners.When the price of foreign inputs falls,the U.S.SRAS curve __________,which tends to __________the U.S.price level.

An appreciation of the U.S.dollar tends to __________ U.S.net exports and shift the U.S.AD curve to the __________.

Exhibit 8-3 -Refer to Exhibit 8-3. A movement from point B to point A on AD? would have been the result of