Exam 10: Aggregate Supply and Aggregate Demand

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

-In the above figure, the short-run aggregate supply curve is SAS and the aggregate demand curve is AD. A recessionary gap exists

The U.S. fiscal policy implemented in 2008 was an attempt to

A change in the money wage rate shifts

In the long-run

If the money prices of resources changes, the SAS curve shifts.

Aggregate demand increases if the quantity of money__________ .

-In the above figure, as the economy adjusts toward equilibrium, the

At long-run macroeconomic equilibrium,__________ .

An above full-employment equilibrium occurs when

A technological advance the long -run aggregate supply curve and the short-run aggregate supply curve.

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

The Keynesian theory of business cycle views volatile expectations of future sales and profits as the main source of economic fluctuations.

-In the above figure, the short-run aggregate supply curve is SAS₁. If the money wage rate increases, there is

The SAS curve and the LAS curve

The long-run aggregate supply curve is vertical at $12 trillion but the short-run aggregate supply curve intersects the aggregate demand curve at $13 trillion. We know that

The U.S. monetary policy implemented in 2008 was an attempt to

The U.S. exchange rate rises. As a result, there is a

-The reason that it is possible for the economy in the above figure to be at equilibrium E₂ rather than at E₁ is that

In the aggregate demand-aggregate supply framework, how does an increase in the price level affect potential GDP?