Exam 14: The Aggregate Model of the Macro Economy

The increase in income generated by the additional government expenditure decreases the demand for money.

Increases in resources and efficiency would increase potential GDP.

The OPEC oil shocks in 1973-1974 are an example of:

Average weekly hours in manufacturing is an example of a:

A decrease in consumer confidence would shift the aggregate demand curve rightward.

An increase in the price level will shift the aggregate demand curve:

Economic variables that generally move in tandem with the overall phases of the business cycle are called:

Discretionary expenditures are federal government expenditures for programs whose funds are authorized and appropriated by Congress and signed by the President, where explicit decisions are made on the size of the programs.

An increase in resources available would decrease potential GDP and the long-run aggregate supply curve.

The full-employment level of output is called:

A decrease in wealth would shift the:

The curve that shows alternative combinations of the price level and real income that result in equilibrium in both the real goods and the money markets is called the

Briefly explain the difference between leading, coincident, and lagging indicators.

A decrease in the costs of resources or inputs of production would shift the:

An increase in wealth would shift the:

The decrease in consumption and investment interest-related spending that occurs when the interest rate rises as government spending increases is called:

In the long-run, an increase in the budget deficit and an expansionary monetary policy would:

Contractionary fiscal policy should be used if:

Unemployment compensation is an example of:

Decreases in the NAIRU represent a: