Exam 10: Bringing In The Supply Side Unemployment and Inflation

The United States economy in the mid-2000s did not experience stagflation because

College graduates looking for jobs were less fortunate in 2007 than graduates in 2009.

An economist who claims that an increase in government spending would result mainly in a higher price level believes the economy is operating where

How are aggregate supply and stagflation related?

Economists believed that the U.S.economy had a (n)____ in 2006 and 2007.

What does inflation do to the value of the oversimplified multiplier?

An inflationary gap exists when consumers and businesses are demanding more output than the economy is capable of producing at full employment.

Figure 10-5 -In Figure 10-5,which graph best illustrates the situation of an economy near full employment that experiences an increase in autonomous consumer spending?

What is the principal reason that economists give for the existence of deflationary and inflationary gaps?

The concept of aggregate supply is a

If the price level rises,what will happen to the level of real GDP supplied?

The diminished employment prospects for the graduates of 2002 is most likely due to the existence of a(n)

As long as the multiplier process is working,firms will meet additional demand without raising prices.

The combination of high unemployment and high inflation is termed

According to an old saying,when too much money is chasing too few goods,we have a(n)

A period of stagflation can be considered as part of the normal aftermath of a

Using the aggregate demand/aggregate supply model,explain the difference in the employment prospects of the graduates of 2007 and 2009.

In Table 10-1,if full employment occurs at $3,100 billion,then

At levels of output close to full employment,the aggregate supply curve is probably

Figure 10-6 -In Figure 10-6,which graph best illustrates an adverse supply shock accompanied by an increase in government spending?