Exam 14: The Aggregate Model of the Macro Economy

A depreciation of the U.S. dollar would shift the:

Manufacturing, employment, monetary, and consumer expectations statistics are examples of lagging indicators.

An increase in resources, efficiency, or technology will shift the:

Federal spending and taxation both affect and are influenced by the overall level of economic activity.

Higher prices and price increases combined with lower real output and income, resulting from a major increase in input prices in the economy is called:

A decrease in foreign real income would shift the:

If the government spending increases without an equal increase in taxes, the government must borrow funds in the financial markets.

At a given price level, a decrease in consumer credit will shift the aggregate demand curve:

The long-run aggregate supply curve is influenced by the price level.

The combination of rising inflation and higher unemployment is called:

A curve that shows the price level at which firms in the economy are willing to produce different levels of goods and services and the resulting level of real income is called:

The long-run aggregate supply curve is influenced by:

An increase in consumer confidence would shift the:

Leading, coincident, and lagging indicators are based on the concept that:

Economic variables that tend to move in tandem with the overall phases of the business cycle are called leading indicators.

A vertical curve that defines the level of full-employment or potential output based on a given amount of resources, efficiency, and technology in the economy is called:

An increase in taxes would shift the:

A decrease in personal taxes would shift the aggregate demand curve rightward.

Why is judging trends in economic indicators important to managers?

The aggregate production function shows the quantity and quality of resources used in production given the efficiency with which resources are utilized and the prevailing technology.