Exam 24: Aggregate Demand and Aggregate Supply

The country of Stanley is at an above- full- employment equilibrium. Which of the following events will return Stanley to full- employment?

If the money wage and other resource prices do not change when the price level rises by 10 per cent, ________.

-In the figure above, in the short- run macroeconomic equilibrium,

When the price level rises, the long-run aggregate supply curve ________.

Other things being constant, the economy's aggregate demand curve shows that

Economic growth is BEST defined as

-In the above figure, the economy is at point A. Then the money wage rate and the price level both fall by 10 per cent. Firms will be willing to supply output equal to

-In the above figure, which movement illustrates the impact of the price level and money wage rate falling at the same rate?

-In the figure above, potential GDP equals

-In the above figure, the economy is at point A when changes occur. If the new equilibrium has a price level of 120 and real GDP of $12 billion, then it must be the case that

-In the above figure, point C represents

-In the above figure, curve A is the ________ curve, curve B is the ________ curve, and curve C is the________ curve.

A Keynesian economist believes that

A change in ________ creates a movement along the aggregate demand curve, while a change in________ shifts the aggregate demand curve.

An increase in the amount of human capital ________ the short-run aggregate supply curve and ________ the long-run aggregate supply curve.

Which of the following changes while moving along the aggregate demand curve?

In a short- run macroeconomic equilibrium, potential GDP exceeds real GDP. If aggregate demand does not change, then the

-In the above figure, the economy is initially at point B. If the government decreases transfer payments, there is

________ economists believe that the economy is self- regulating and always at full employment.

The Australian exchange rate rises. As a result, there is a