Exam 10: Aggregate Supply and Aggregate Demand

Which of the following changes does NOT shift the short- run aggregate supply curve?

-In the above figure, the short- run equilibrium depicts an economy

An aggregate supply curve depicts the relationship between

Which of the following changes does NOT shift the long- run aggregate supply curve?

Other things constant, the economy's aggregate demand curve shows that

-The data in the above figure indicate that the economy will be in a long- run macroeconomic equilibrium at a price level of

What are the factors that can shift the short- run aggregate supply curve but not the long- run aggregate supply curve? Explain your answer.

According to the wealth effect, an increase in the price level real wealth and _ consumption expenditure.

By using only the aggregate demand curve, we can determine

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

Aggregate demand is the relationship between the quantity of real GDP demanded and the )

-In the above figure, the economy is at point A. Then the price level falls to 90 while the money wage rate does not change. Firms will be willing to supply output equal to

-In the above figure, the economy initially is at point C. Then the domestic price level rises by 10. A

In the long- run

When the price level rises, the long- run aggregate supply curve .

In the long- run equilibrium, an increase in the quantity of capital leads to

-In the above figure, the shift from point C to point B might be the result of

Suppose the economy is experiencing a recessionary gap. In the long run, if aggregate demand does not change the money wage rate _ _, unemployment , and the price level .

In a short- run macroeconomic equilibrium, potential GDP exceeds real GDP, so if aggregate demand does not change the

Suppose that the money wage in the economy increases by 8 percent. As a result the