Exam 10: Bringing In The Supply Side Unemployment and Inflation

When inflation occurs,net exports will

If the selling price falls and input costs are fixed,profit margins will increase.

The aggregate supply curve shows the relationship between ____ and ____,holding all other factors constant.

The aggregate supply curve will shift to the left if

Economists generally assume that there is a short-run trade-off between

Discuss some of the arguments that help explain why wages and prices rarely fall in a modern economy.

In response to the demands of environmentalists,large sections of timberlands are put off limits to logging.What effect will this have on the aggregate supply curve?

Figure 10-5 -In Figure 10-5,which graph best illustrates the situation of an economy with high unemployment that experiences an increase in investment spending?

As the multiplier process is working on the demand side:

In the period from 1996-2000,the United States economy experienced the unusual combination of

The post-World War II record shows that recessionary gaps may be long-lasting because ____ tends not to occur.

What would be the likely result of a recessionary gap? If this leads to a fall in the nominal wage what impact it would have on the aggregate supply curve and on recessionary gap?

In Table 10-1,what is the equilibrium level of real output and the equilibrium price?

The years 2002 through 2007 can be described as a period of

Figure 10-8 -Figure 10-8 illustrates a period of

The aggregate supply curve is the relationship between the price level and the quantity of real GDP purchased.

Figure 10-1 -If the price level in Figure 10-1 were 120,

How is it possible for the economy to have an inflationary gap?

A recession can be expected to reduce inflation in the economy if the recession is caused by a(n)

The investment and capital spending boom of the late 1990s most likely resulted in a(n)