Exam 12: Part B: Aggregate Demand and Aggregate Supply

Refer to the diagram given below. When the real output increases from Q₁ and the price level decreases from P₁, there should have been a:

A rightward shift in the aggregate supply curve might best be explained by:

Refer to the diagram below.If the initial aggregate demand and supply curves are AD₀ and AS₀, the equilibrium price level and level of real domestic output will be:

Other things equal, an increase in productivity will shift the aggregate supply curve rightward.

If real output rises and the price level falls, this would likely be due to a:

A movement upward along an existing aggregate demand curve that changes the price level is equivalent to a(n):

The foreign-trade effect causes the aggregate demand curve for an economy to:

The passage of new legislation requiring more extensive government regulation of business will most likely:

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

The aggregate demand curve can be derived from the aggregate expenditures model as indicated by the fact that:

Wage contracts, efficiency wages, and the minimum wage are explanations for why:

The aggregate demand curve is:

An expected decline in the prices of consumer goods will:

In which of the following sets of circumstances can we confidently expect inflation?

Other things equal, if the international value of the dollar were to depreciate, the:

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

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

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

Which of the above diagrams best portrays the effects of declines in the incomes of other major nations with whom we trade?

The following table gives information about the relationship between input quantities and real domestic output in a hypothetical economy: If the price of each input is $5, the per unit cost of production in the above economy is: