\[\begin{array}{l} \text { Real GDP supplied }\\ \begin{array} { | l | l | l | l | } \hline \text { Price level } & \begin{array} { l } \text { Real GDP } \\ \text { demanded } \\ \text { (dollars) } \end{array} & \begin{array} { l } \text { Short run } \\ \text { (dollars) } \end{array} & \begin{array} { l } \text { Long run } \\ \text { (dollars) } \end{array} \\ \hline 90 & 700 & 300 & 600 \\ \hline 100 & 600 & 400 & 600 \\ \hline 110 & 500 & 500 & 600 \\ \hline 120 & 400 & 600 & 600 \\ \hline \end{array} \end{array}\] -The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. In short-run equilibrium, there is____________ .

A) a recessionary gap of $100 B) a recessionary gap of $200 C) an inflationary gap of $100 D) an inflationary gap of $200 A) a recessionary gap of $100 B) a recessionary gap of $200 C) an inflationary gap of $100 D) an inflationary gap of $200

The table below shows data for India?s economy. Real GDP is measured in millions of rupees. Suppose that full employment occurs when real GDP is 27,000 million rupees. \[\begin{array} { | l | l | l | l | } \hline & \text { Price level } & \begin{array} { l } \text { Real GDP } \\ \text { supplied in the short } \\ \text { run } \end{array} & \text { Real GDP demanded } \\ \hline \text { a } & 114 & 23,501 & 35,898 \\ \hline \text { b } & 120 & 25,355 & 32,341 \\ \hline \text { c } & 125 & 27,670 & 27,670 \\ \hline \text { d } & 131 & 30,366 & 18,569 \\ \hline \text { e } & 138 & 33,164 & 15,898 \\ \hline \end{array}\] The economy is experiencing___________ gap and firms will ___________ .

A) a recessionary gap; increase production B) a recessionary gap; decrease money wages paid to workers C) an inflationary gap; increase production D) an inflationary gap; increase money wages paid to workers A) a recessionary gap; increase production B) a recessionary gap; decrease money wages paid to workers C) an inflationary gap; increase production D) an inflationary gap; increase money wages paid to workers

Exam 10: Aggregate Supply and Aggregate Demand

Real GDP supplied Price level Real GDP demanded (dollars) Short run (dollars) Long run (dollars) 90 700 300 600 100 600 400 600 110 500 500 600 120 400 600 600 -The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. In short-run equilibrium, there is____________ .

(Multiple Choice)

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Question 101

The intertemporal substitution effect of the price level on aggregate demand

(Multiple Choice)

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Question 102

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

(True/False)

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Question 103

An above full-employment equilibrium is

(Multiple Choice)

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Question 104

Suppose the economy was initially in a long-run equilibrium. Then the world economy expands so that foreign incomes rise. U.S. aggregate demand _and eventually the money wage rate_

(Multiple Choice)

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Question 105

Give examples of factors that decrease aggregate demand. Which way does the aggregate demand curve shift?

(Essay)

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Question 106

In long-run macroeconomic equilibrium, the

(Multiple Choice)

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Question 107

Which of the following shifts the aggregate demand curve rightward?

(Multiple Choice)

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Question 108

The table below shows data for India?s economy. Real GDP is measured in millions of rupees. Suppose that full employment occurs when real GDP is 27,000 million rupees. Price level Real GDP supplied in the short run Real GDP demanded a 114 23,501 35,898 b 120 25,355 32,341 c 125 27,670 27,670 d 131 30,366 18,569 e 138 33,164 15,898 The economy is experiencing_ gap and firms will _ .

(Multiple Choice)

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Question 109

A decrease in the money wage rate

(Multiple Choice)

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Question 110

-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 $12.0 trillion, then it must be the case that

(Multiple Choice)

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Question 111

A lower price level combined with a decrease in real GDP occurs when the

(Multiple Choice)

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Question 112

How do changes in the money wage rate affect the LAS and SAS curves? Explain your answer.

(Essay)

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Question 113

Economic growth in India has averaged about 8.5 percent in recent years and while inflation averaged almost 9 percent. The AS-AD model shows this process as

(Multiple Choice)

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Question 114

The quantity of real GDP demanded equals $12.4 trillion when the price level is 95. If the price level falls to 90, the quantity of real GDP demanded equals

(Multiple Choice)

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Question 115

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

(True/False)

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Question 116

Over time in a growing economy, the long-run aggregate supply curve will

(Multiple Choice)

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Question 117

Business cycles are the result of

(Multiple Choice)

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Question 118

-In the above figure, which movement illustrates the impact of a rising price level and a constant money wage rate?

(Multiple Choice)

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Question 119

An individual holds $10,000 in a checking account and the price level rises significantly. Hence

(Multiple Choice)

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Question 120

Real GDP supplied Price level Real GDP demanded (dollars) Short run (dollars) Long run (dollars) 90 700 300 600 100 600 400 600 110 500 500 600 120 400 600 600 -The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. In short-run equilibrium, there is____________ .

The intertemporal substitution effect of the price level on aggregate demand

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

An above full-employment equilibrium is

Suppose the economy was initially in a long-run equilibrium. Then the world economy expands so that foreign incomes rise. U.S. aggregate demand _and eventually the money wage rate_

Give examples of factors that decrease aggregate demand. Which way does the aggregate demand curve shift?

In long-run macroeconomic equilibrium, the

Which of the following shifts the aggregate demand curve rightward?

A decrease in the money wage rate

-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 $12.0 trillion, then it must be the case that

A lower price level combined with a decrease in real GDP occurs when the

How do changes in the money wage rate affect the LAS and SAS curves? Explain your answer.

Economic growth in India has averaged about 8.5 percent in recent years and while inflation averaged almost 9 percent. The AS-AD model shows this process as

The quantity of real GDP demanded equals $12.4 trillion when the price level is 95. If the price level falls to 90, the quantity of real GDP demanded equals

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

Over time in a growing economy, the long-run aggregate supply curve will

Business cycles are the result of

-In the above figure, which movement illustrates the impact of a rising price level and a constant money wage rate?

An individual holds $10,000 in a checking account and the price level rises significantly. Hence

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Expenditure Multipliers: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

Exam 10: Aggregate Supply and Aggregate Demand

Real GDP supplied Price level Real GDP demanded (dollars) Short run (dollars) Long run (dollars) 90 700 300 600 100 600 400 600 110 500 500 600 120 400 600 600 -The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. In short-run equilibrium, there is____________ .

The intertemporal substitution effect of the price level on aggregate demand

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

An above full-employment equilibrium is

Suppose the economy was initially in a long-run equilibrium. Then the world economy expands so that foreign incomes rise. U.S. aggregate demand _____________and eventually the money wage rate_____________

Give examples of factors that decrease aggregate demand. Which way does the aggregate demand curve shift?

In long-run macroeconomic equilibrium, the

Which of the following shifts the aggregate demand curve rightward?

A decrease in the money wage rate

-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 $12.0 trillion, then it must be the case that

A lower price level combined with a decrease in real GDP occurs when the

How do changes in the money wage rate affect the LAS and SAS curves? Explain your answer.

Economic growth in India has averaged about 8.5 percent in recent years and while inflation averaged almost 9 percent. The AS-AD model shows this process as

The quantity of real GDP demanded equals $12.4 trillion when the price level is 95. If the price level falls to 90, the quantity of real GDP demanded equals

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

Over time in a growing economy, the long-run aggregate supply curve will

Business cycles are the result of

-In the above figure, which movement illustrates the impact of a rising price level and a constant money wage rate?

An individual holds $10,000 in a checking account and the price level rises significantly. Hence

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Expenditure Multipliers: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

Suppose the economy was initially in a long-run equilibrium. Then the world economy expands so that foreign incomes rise. U.S. aggregate demand _and eventually the money wage rate_