Exam 10: Aggregate Supply and Aggregate Demand

The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. Lotus Land is in short- run macroeconomic equilibrium. In the long run, if aggregate demand does not change then Lotus Land will return to full- employment as .

A movement along the aggregate demand curve but no shift in the aggregate demand curve is created by a change in the price level.

The level of output when there is full employment is called actual GDP.

The table below shows data for India's economy. Real GDP is measured in millions of rupees. If potential GDP in India is million rupees, India is experiencing .

A below full- employment equilibrium

In recent years, investment in Japan has increased by about 13 percent from one year to the next. As a result, we would expect

The long- run aggregate supply curve is

A decrease in the price level accompanied by no change in the money wage rate leads to movement along the _ aggregate supply curve.

Which of the following is true about the long- run aggregate supply curve?

The short- run aggregate supply curve shifts because of changes in all of the following EXCEPT

If you have $5,000 in wealth and the GDP deflator decreases 20 percent, then

The aggregate demand curve shows the relationship between the price level and

Suppose the price level, the money wage, and the price of all other resources rise by 10 percent. This set of changes leads to

How are potential GDP, full employment and the LAS curve related?

The SAS curve shifts if there is a change in the price level.

An example of monetary policy is an increase in by the , which aggregate demand.

An increase in the price level creates a

Which of the following increases aggregate demand and shifts the AD curve rightward?

An increase in foreign incomes

-In the above figure, if the economy is at point A, which of the following is true?