Exam 9: Aggregate Demand and Supply

If companies increase their level of investment, a short-run increase in output will be followed by a reduction in output, resulting in an overall decrease in output.

The real GDP that firms will produce at varying price levels is:

Short-run macroeconomic equilibrium cannot be achieved when:

If the economy is above long-run equilibrium output, what will happen in the long run if SRAS adjusts?

Cost-push inflation occurs because of a shift to the:

Rising confidence in the economy shifts the aggregate demand curve to the left.

The long-run aggregate supply curve represents the full-employment capacity of the economy.

Which of the following will NOT shift the aggregate supply curve to the left?

Determinants of short-run aggregate supply include the components of GDP: consumption, investment, government spending, and net exports.

Which is NOT consistent with the level of output in the long run?

The Great Depression was characterized by a lack of aggregate demand.

In an AD/AS model, if the economy is below its long-run output, what will happen in the long run if the markets are left alone?

Which of the following would shift the short run aggregate supply curve but not have any impact on the long-run aggregate supply curve?

A tax decrease on producers will shift the aggregate supply curve to the left.

An increase in investment will cause the aggregate demand curve to shift to the right.

A change in _____ will cause a change in the quantity demanded of real GDP.

A solution to the simultaneous emergence of deflation and unemployment is to use policies that shift the:

Which of the following factors would most likely shift the SRAS curve to the right?

The collapse of home values in 2008 led to _____ in Americans' consumption and _____ in their saving rates.

An increase in government spending will increase aggregate demand.