Exam 12: B: Aggregate Demand and Aggregate Supply

The following table shows the aggregate demand and aggregate supply schedule for a hypothetical economy. Refer to the above table.If the quantity of real domestic output demanded decreased by $500 and the quantity of real domestic output supplied increased by $500 at each price level, the new equilibrium price level and quantity of real domestic output would be:

The relationship between the price level and the amount of real GDP is:

The shape of the aggregate demand curve is explained by the:

The short-run aggregate supply curve is upward-sloping because:

A factor that shifts the aggregate demand curve for an economy is:

The foreign trade effect suggests that an increase in the Canadian price level relative to other countries will:

Refer to the diagram given below.There are two panels in the diagram. Assuming a constant price level, an increase in the aggregate expenditures schedule from AE₁ to AE₂ would:

When the price level decreases:

An increase in taxes will cause a(n):

Refer to the information below.Investment spending would most likely be influenced by changes in: 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

A change in aggregate supply would be caused by a change in:

Other things equal, appreciation of the dollar:

In terms of aggregate supply, the difference between the long run and the short run is that in the long run:

An increase in aggregate demand is most likely to be caused by a decrease in:

A n expected rise in the rate of inflation for consumer goods will:

If the current price level was such that the aggregate quantity demanded exceeded the aggregate quantity supplied, we would expect:

A decrease in consumer spending can be expected to shift the:

The following table shows the aggregate demand and aggregate supply schedule for a hypothetical economy. Refer to the above table.The equilibrium price level and quantity of real domestic output will be:

Which of the above diagrams best portrays the effects of an increase in foreign spending on our products?

Refer to the above diagrams.A decline in aggregate expenditures from AE₂ to AE₁resulting from the wealth, interest rate, and foreign trade effects would be depicted as: