Exam 16: A: Long-Run Macroeconomic Adjustments

(a) Using a graph showing aggregate demand, short-run aggregate supply, and long-run aggregate supply, illustrate an economy that faces an inflationary gap. (b) Explain how the inflationary gap can be eliminated and evaluate the possibilities.

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Question 21

What is the long-run equilibrium in the aggregate demand-aggregate supply model?

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Question 22

Describe the characteristics of the long-run aggregate supply curve.Explain how changes in the price level affect the short-run aggregate supply curve and the long-run aggregate supply curve.

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Question 23

What are three significant generalizations regarding the inflation-unemployment relationship that are supported by results from the long-run AD-AS model?

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Question 24

Describe the process that occurs with demand-pull inflation in the long-run aggregate demand-aggregate supply model.Assume that the economy is initially at the full-employment level of real GDP.

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Question 25

In general, the Canadian economy has experienced ongoing inflation.Explain how this is possible.

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Question 26

Explain the basic arguments for supply-side economics.

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Question 27

If the long-run supply curve is fixed in place, can there be persistent inflation?

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Question 28

Showing 21 - 28 of 28

Exam 16: A: Long-Run Macroeconomic Adjustments

(a) Using a graph showing aggregate demand, short-run aggregate supply, and long-run aggregate supply, illustrate an economy that faces an inflationary gap. (b) Explain how the inflationary gap can be eliminated and evaluate the possibilities.

What is the long-run equilibrium in the aggregate demand-aggregate supply model?

Describe the characteristics of the long-run aggregate supply curve.Explain how changes in the price level affect the short-run aggregate supply curve and the long-run aggregate supply curve.

What are three significant generalizations regarding the inflation-unemployment relationship that are supported by results from the long-run AD-AS model?

Describe the process that occurs with demand-pull inflation in the long-run aggregate demand-aggregate supply model.Assume that the economy is initially at the full-employment level of real GDP.

In general, the Canadian economy has experienced ongoing inflation.Explain how this is possible.

Explain the basic arguments for supply-side economics.

If the long-run supply curve is fixed in place, can there be persistent inflation?

B: Limits, Alternatives, and Choices

A: - Limits, Alternatives, and Choices

B: The Market System and the Circular Flow

A: - The Market System and the Circular Flow

B: Demand, Supply, and Market Equilibrium

A: - Demand, Supply, and Market Equilibrium

B: Market Failures: Public Goods and Externalities

A: - Market Failures: Public Goods and Externalities

B: Governments Role and Government Failure

A: Governments Role and Government Failure

B: an Introduction to Macroeconomics

A: an Introduction to Macroeconomics

B: Measuring the Economys Output

A: Measuring the Economys Output

B: Economic Growth

A: Economic Growth

B: Business Cycles, Unemployment, and Inflation

A: Business Cycles, Unemployment, and Inflation

B: Basic Macroeconomic Relationships

A: Basic Macroeconomic Relationships

B: The Aggregate Expenditures Model

A: The Aggregate Expenditures Model

B: Aggregate Demand and Aggregate Supply

A: Aggregate Demand and Aggregate Supply

B: Fiscal Policy, Deficits, Surpluses, and Debt

A: Fiscal Policy, Deficits, Surpluses, and Debt

B: Money, Banking, and Money Creation

A: Money, Banking, and Money Creation

B: Interest Rates and Monetary Policy

A: Interest Rates and Monetary Policy

C: Financial Economics

B: Long-Run Macroeconomic Adjustments

A: International Trade

B: International Trade

A: The Balance of Payments and Exchange Rates

B: The Balance of Payments and Exchange Rates

The Economics of Developing Countries

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