Exam 24: Aggregate Demand and Aggregate Supply

The short- run aggregate supply curve is upward- sloping because in the short run the

Aggregate demand increases if the quantity of money ________.

An economy is at full employment. Which of the following events can create a recessionary gap?

The economy is in its short- run equilibrium at the point where the

When the quantity of capital increases, then the

-In the above figure, if the economy is at point a, an increase in ________ will move the economy to ________.

When real GDP exceeds potential GDP, then the economy has

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

-In the above figure, at the price level of 140 and real GDP of

-Based on the figure above, short- run equilibrium occurs at the price level of

In the short run, an increase in government expenditure on goods and services ________ real GDP and ________ the price level.

-In the above figure, which part corresponds to a destruction of part of the nation's capital stock?

Which of the following shifts the aggregate demand curve rightward?

-The above figure depicts an economy with a short- run equilibrium

For movements along the long- run aggregate supply curve,

-The data in the above figure indicate that the economy will be in a long- run macroeconomic equilibrium at a price level of

-In the above figure, which part corresponds to an increase in the money wage rate?

In the macroeconomic short run,

Which of the following increases aggregate demand?

When the prices of Australian- produced goods rise and the prices of foreign- produced goods do not change, the result is