Exam 10: Aggregate Supply and Aggregate Demand

Consider an economy starting from a position of full employment.Which one of the following changes does not occur as a result of an increase in aggregate demand?

We observe a decrease in the price level and an increase in real GDP.Which of the following is a possible explanation?

If the price level rises, then the wealth effect leads to

Which one, if any, of the following events shift the short- run aggregate supply curve but not the long- run aggregate supply curve?

Everything else remaining the same, an increase in the quantity of money

A technological advance shifts the

If real GDP is greater than potential GDP, we would expect

Classical macroeconomists recommend

Use the table below to answer the following questions. Table 10.3.3 -Refer to Table 10.3.3.When the economy is at its short- run macroeconomic equilibrium, the price level is

If real GDP is greater than potential GDP, the economy is

A vertical long- run aggregate supply curve indicates that

Use the figure below to answer the following questions. Figure 10.3.3 -Refer to Figure 10.3.3.In which of the graphs would we predict that eventually the price level will fall and real GDP will increase, everything else remaining the same?

Use the table below to answer the following questions. Table 10.3.3 -Refer to Table 10.3.3.When the economy is at its short- run macroeconomic equilibrium,

If the money wage rate falls, then

Which of the following news quotes best describes a new classical view of a recession?

Which of the following statements about the Keynesian view of the macroeconomy is incorrect?

Use the figure below to answer the following questions. Figure 10.3.5 -Refer to Figure 10.3.5.If the aggregate demand curve is AD₁, real GDP is

Use the figure below to answer the following questions. Figure 10.3.2 -Refer to Figure 10.3.2.As the economy automatically adjusts to long- run equilibrium, the

Use the figure below to answer the following questions. Figure 10.2.1 -Refer to Figure 10.2.1.Which graph illustrates the effect of a decrease in the quantity of money?

The Canadian price level rises.What is the effect on the quantity of real GDP demanded or aggregate demand in Canada?