Exam 10: Aggregate Supply and Aggregate Demand

-In the above figure, at the price level of 140 and real GDP of

People expect their incomes will decrease next year. As a result, the will shift .

Which of the following increases aggregate demand?

A fall in the exchange rate of the dollar

If the quantity of money increases, the

Short- run macroeconomic equilibrium occurs when the quantity of real GDP demanded _ .

Suppose that during 2009, the actual real GDP of Chile was 3.5 billion pesos at the same time the potential GDP was 3.4 billion pesos. What sort of equilibrium existed in Chile?

A reason the aggregate demand curve slopes downward when the price level rises is because

In Japan in 2000 the price level fell by 5 percent and nominal wage rates did not change. As a result, there was a

The business cycle occurs because aggregate demand and aggregate supply change at uneven rates.

Business cycles are the result of

In the long- run equilibrium, a fall in the exchange rate that increases exports leads to

-In the above figure, the economy is at point A and the money wage rate rises by 10 percent. If the price level is constant, firms will be willing to supply output equal to

Which of the following events will increase short- run aggregate supply?

Suppose the current situation is such that the price level is 120, real GDP is $13 trillion, and GDP along the long- run aggregate supply curve is $12.6 trillion. What will take place to restore the long- run equilibrium?

In 2008, Japan's government approved a $1 trillion fiscal stimulus plan comprised of both tax cuts and government expenditure increases. As a result,

Which of the following changes would NOT shift the aggregate demand curve?

In the short- run

Explain the reasons why the AD curve slopes downward.

Which of the following shifts the short- run aggregate supply curve? I. changes in the size of the labor force II. changes in the money wage rate