Exam 12: B: Aggregate Demand and Aggregate Supply

Changes in which of the two factors below would most likely cause a change in consumer spending? The following list of factors, are related to the aggregate demand curve.Real-balances effect Household expectations Interest-rate effect Personal income tax rates Profit expectations National income abroad Government spending Foreign trade effect Exchange rates Degree of excess capacity

If there is a decrease in the price level, then it will increase aggregate expenditures and this change is equivalent to a(n):

The aggregate demand curve:

An expected decline in the prices of consumer goods will:

Minimum wage laws tend to make the price level more flexible rather than less flexible.

An increase in productivity will shift the aggregate:

The horizontal shape of the immediate short run aggregate supply implies that:

Refer to the diagram below.Suppose that aggregate demand increased from AD₁ to AD₂.For the price level to stay constant:

An increase in business taxes will shift the aggregate supply curve leftward.

Other things equal, the short-run aggregate supply curve shifts positions when:

The relationship between the aggregate demand curve and the aggregate expenditures model is shown in the fact that:

Refer to the diagram given below. If AD₁ shifts to AD₂, then the equilibrium output and price level are:

The Great Moderation refers to:

In terms of aggregate supply, in the immediate short run:

The aggregate supply curve slopes downward.

The long run aggregate supply:

The following table gives information about the relationship between input quantities and real domestic output in a hypothetical economy: Refer to the above information, the level of productivity is:

The real-balances, interest rate, and foreign trade effects all help explain:

Which one of the following would increase per unit production cost and therefore shift the aggregate supply curve to the left?

Which of the above diagrams best portrays the effects of an increase in productivity?