Exam 24: Aggregate Demand and Aggregate Supply

-In the above figure, the economy is at point A. Then the price level falls to 90 while the money wage rate does not change. Firms will be willing to supply output equal to

Which of the following events will increase long- run aggregate supply?

________ economists believe that active help from fiscal and monetary policy is needed to ensure that the economy is operating at full employment.

Which of the following events will increase short- run aggregate supply?

-In the above figure, the short- run aggregate supply curve is SAS₁. If technology advances, there is

All of the following shift the LAS curve EXCEPT

The intertemporal substitution effect refers to the substitution of

-In the above figure, the short- run aggregate supply curve is SAS₁. Suppose that the price level in the economy increases. As a result there is

One reason that the aggregate demand curve has a negative slope is because

Technological progress will

According to the intertemporal substitution effect, when the price level rises and other things remain the same

The aggregate demand curve shows

-In the above figure, which point corresponds to an increase in technology?

The long- run aggregate supply curve is vertical because

Keynesian macroeconomists recommend