Exam 10: Bringing In The Supply Side Unemployment and Inflation

When the expenditure schedule is too low,the result is a(n)

The example of an inflationary gap in 2006-2007 suggested that the economy adjusts

The aggregate supply curve normally

To calculate a firm's per unit of output profit,it is necessary to subtract

When equilibrium GDP is below potential GDP,jobs are

The price of imported oil decreased in 2001.How did this affect the aggregate supply curve?

Stagflation may follow an inflationary boom.

Many economists are in favor of increased immigration of adult foreigners who possess high levels of skills and education.Why?

One of the justifications of government stabilization policy is that it may

When OPEC cut energy production in 1973,the aggregate supply curve shifted outward.

Figure 10-7 -Which of the panels in Figure 10-7 shows an economic recession caused by primarily by a change aggregate demand?

Like the supply curve for individual goods and services,the aggregate supply curve slopes upward and to the right.

Figure 10-1 -If the price level in Figure 10-1 were 100,

The primary effect of OPEC actions in the period from 1973 to 1980 was to increase

Figure 10-9 -Figure 10-9 illustrates a period of

What is the usual response of firm to an increase in the price of what they sell?

The federal government increases spending by $50 billion and the main effect is an increase in the price level.It must be true that the economy is operating on the

One complication that tends to prolong recessionary gaps is that wages

An increase in the price level causes the aggregate supply curve to shift to another supply schedule.

The aggregate supply curve shows for each price level the