Exam 10: Aggregate Supply and Aggregate Demand

When real GDP exceeds potential GDP, then the economy is in

-The data in the above table show that when the price level is 120, the economy

The level of output at which the short- run aggregate supply curve and the aggregate demand curve intersect is the full employment level of GDP.

Disposable income when .

The aggregate demand curve shows

In the short run, a supply shock that shifts the short- run aggregate supply curve leftward raises the price level and decreases real GDP.

Which of the following shifts the aggregate demand curve rightward?

-In the above figure, the economy is at point A when changes occur. If the new equilibrium has a price level of 100 and real GDP of $13.0 trillion, then it must be the case that

-The data in the above table indicate that when the price level is 120,

The equilibrium level of GDP occurs at the level of GDP at which the

-The curve labeled A in the above figure is

If the world economy expands so that foreign demand for U.S.- made goods increases, in the short run what will happen to aggregate demand, the price level, and real GDP in the U.S.?

-In the above figure, if the economy moves from point a to point b,

A decrease in the quantity of money

When the economy is at an above full- employment equilibrium, .

The short- run aggregate supply curve shifts leftward when the

-The curve labeled A in the above figure will shift rightward when

-In the above figure, B is the current long- run aggregate supply curve and E is the current short- run aggregate supply curve. If there is an increase in the full- employment quantity of labor, then the long- run aggregate supply curve and the short- run aggregate supply curve

-In the above figure, the short- run aggregate supply curve is SAS₁. If the prices of resources fall, there is

-In the above figure, the economy is initially at point B. Then the price level falls by 10. The wealth effect will help