Exam 12: B: Aggregate Demand and Aggregate Supply

Efficiency wages will:

Which of the following is true of aggregate supply in the long run?

Suppose that real domestic output in an economy is 20 units, the quantity of inputs is 10, and the price of each input is $4.Refer to the above information.Given an increase in input price from $4 to $6, we would expect the aggregate:

Other things being equal, if the national incomes of our major international lending partners were to rise, our:

A decrease in government spending will cause a(n):

The aggregate demand curve is:

An economy is employing 2 units of capital, 5 units of raw materials, and 8 units of labour to produce its total output of 640 units.Each unit of capital costs $10, each unit of raw materials, $4, and each unit of labour, $3.Refer to the above information.The per unit cost of production in this economy is:

Suppose the full-employment level of real output (Q) for a hypothetical economy is $500 and that the price level (P) initially is 100.Use the following short-run aggregate supply schedules to answer the next question. Refer to the information above.If the price level unexpectedly increases from 100 to 125, the level of real output in the short run will:

Refer to the diagram below. A shift of the aggregate demand curve from AD₁ to AD₀ might be caused by a(n):

Menu costs will:

If personal taxes were decreased and input productivity increased simultaneously, the equilibrium:

Which effect best explains the downward slope of the aggregate demand curve?

Which one of the following would not shift the aggregate demand curve?

All else equal, an increase in imports will shift the aggregate expenditures curve:

An increase in the price level in the aggregate expenditures model would:

An increase in net exports can be expected to shift the:

If the dollar price of foreign currencies falls (that is, the dollar appreciates), we would expect:

Productivity is calculated by:

An increase in wealth from a substantial increase in stock prices will move the economy along the existing aggregate demand curve.

Suppose the full-employment level of real output (Q) for a hypothetical economy is $500 and that the price level (P) initially is 100.Use the following short-run aggregate supply schedules to answer the next question. Refer to the information above.If the price level unexpectedly declines from 100 to 75, the level of real output in the short run will: