Exam 24: Aggregate Demand and Aggregate Supply

-In the above figure, the economy is at point A. Then the price level rises to 120 while the money wage rate remains constant. Firms will be willing to supply output equal to

Suppose the economy is experiencing a recessionary gap. In the long run, if aggregate demand does not change, the money wage rate ________, unemployment ________, and the price level ________.

-The curve labelled A in the above figure is a

-In Australia, during the past five decades, economic growth was most rapid during the ________.

Which of the following changes does NOT shift the short- run aggregate supply curve?

A recessionary gap means that short- run macroeconomic equilibrium GDP

Which of the following statements regarding aggregate supply is correct?

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

One reason that the aggregate demand curve has a negative slope is that when the domestic price level rises,

If you have $5,000 in wealth and the price level decreases 20 per cent, then

If the money price of a resource such as oil falls, then the

A change in the money wage rate shifts

If the expected future inflation rate decreases, then

Stagflation is the combination of

Over time in a growing economy, the long- run aggregate supply curve will

Suppose the economy was initially in a long-run equilibrium. Then the world economy expands so that foreign incomes rise. Australian aggregate demand ________ and eventually the money wage rate ________.

Which of the following statements is FALSE?

The long-run aggregate supply curve is ________ because along it, as prices rise, the money wage rate ________.

The quantity of real GDP demanded equals $12.2 billion when the price level is 90. If the price level rises to 95, the quantity of real GDP demanded equals

-In the figure above, the economy is at point A when the price level falls to 100. Money wage rates and all other resource prices remain constant. Firms are willing to supply output equal to