Exam 10: Aggregate Supply and Aggregate Demand

In short- run macroeconomic equilibrium

When the price level increases, .

In the short run, an increase in government expenditures on goods and services real GDP and the price level.

Technological progress will

The U.S. aggregate demand curve shifts leftward if

Which of the following is correct when describing business cycles? I. The economy does not grow or shrink at a steady pace. II. Short- run aggregate supply increases at a fixed pace. III. There are usually a few years between recessions.

The quantity of real GDP supplied _ _ the amount of _.

-In the above figure, the economy is initially at point B. If the Fed increases the quantity of money, there is

People expect that the El Nino effect will cause drought in Australia in coming years. If most firms expect their profits will fall during the next five years, Australia's this year.

For movements along the short- run aggregate supply curve,

What two variables are determined in an aggregate supply- aggregate demand figure? Is the slope of the short- run aggregate supply curve positive or negative? Is the slope of the aggregate demand curve positive or negative?

A change in which of the following shifts the short- run aggregate supply curve?

Inflation occurs over time as a result of

Which of the following shifts the aggregate demand curve rightward?

Along a short- run aggregate supply curve, a decrease in the price level means that

-The above figure illustrates

-In the above figure, the economy is initially at point B. If the government decreases transfer payments, there is

What are the components of fiscal policy? Explain how fiscal policy affects aggregate demand.

What are the substitution effects that affect aggregate demand?

The wealth effect points out that consumption decreases when people's real wealth decreases.