Exam 12: Aggregate Demand and Aggregate Supply

Use the following to answer questions: Figure: Inflationary and Recessionary Gaps -(Figure: Inflationary and Recessionary Gaps) Refer to Figure: Inflationary and Recessionary Gaps. If the economy is in short-run equilibrium at Y₁ in panel (b), the economy is in:

(Multiple Choice)

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Question 141

An inflationary gap occurs when potential output is above actual aggregate output.

(True/False)

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Question 142

Stagflation is a combination of _ unemployment and _ inflation.

(Multiple Choice)

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Question 143

Use the following to answer questions: Figure: AD-AS Model II -(Figure: AD-AS Model II) Refer to Figure: AD-AS Model II. When consumers and firms become more optimistic, in the short run the _ curve will shift to the _.

(Multiple Choice)

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Question 144

Use the following to answer questions: Figure: Policy Alternatives -(Figure: Policy Alternatives) Refer to Figure: Policy Alternatives. In panel (b), the economy is initially in short-run equilibrium at real GDP level Y₁ and price level P₂. If the government decides to intervene, it will MOST likely:

(Multiple Choice)

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Question 145

Suppose that an economy is in an inflationary gap in the short run. In the long run:

(Multiple Choice)

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Question 146

When the price level increases, firms in perfectly competitive markets usually have an increase in profit per unit and increase output.

(True/False)

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Question 147

Use the following to answer questions: Figure: Policy Alternatives -(Figure: Policy Alternatives) Refer to Figure: Policy Alternatives. If the economy is in equilibrium at Y₁ in panel (b) and the government does not intervene, the result will likely be a shift of:

(Multiple Choice)

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Question 148

Short-run aggregate supply increases when producers are willing to supply more at any given price level.

(True/False)

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Question 149

Use the following to answer questions: Figure: AD-AS Model I -(Figure: AD-AS Model I) Refer to Figure: AD-AS Model I. If the economy is at point X, the appropriate monetary policy is to:

(Multiple Choice)

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Question 150

An increase in the nominal wage will increase potential output.

(True/False)

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Question 151

Potential output would NOT be increased by:

(Multiple Choice)

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Question 152

If the short-run macroeconomic equilibrium is to the ___ of the economy's potential output, then there is a(n) _ gap and the aggregate price level is expected to ___.

(Multiple Choice)

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Question 153

The short-run aggregate supply curve is:

(Multiple Choice)

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Question 154

The short-run aggregate supply curve is:

(Multiple Choice)

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Question 155

Use the following to answer questions: Figure: Shifts of the AD-AS Curves -(Figure: Shifts of the AD-AS Curves) Refer to Figure: Shifts of the AD-AS Curves. An increase in wages in the short run is illustrated by panel:

(Multiple Choice)

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Question 156

As a result of a sharp decrease in aggregate demand between 1929 and 1933, the unemployment rate changed from _% in 1929 to _% in 1933.

(Multiple Choice)

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Question 157

Use the following to answer questions: Figure: AD-AS Model II -(Figure: AD-AS Model II) Refer to Figure: AD-AS Model II. If the value of household wealth increases, the _ curve will shift to the _.

(Multiple Choice)

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Question 158

Suppose the economy is operating in long-run equilibrium and a positive demand shock hits. We expect a short-run increase in real GDP and the price level and a long-run _ in real GDP and _ the price level.

(Multiple Choice)

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Question 159

Suppose that political instability in the Middle East interrupts the supply of oil. The ___ curve shifts _, output _, and prices ___.

(Multiple Choice)

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Question 160

Showing 141 - 160 of 308

Use the following to answer questions: Figure: Inflationary and Recessionary Gaps -(Figure: Inflationary and Recessionary Gaps) Refer to Figure: Inflationary and Recessionary Gaps. If the economy is in short-run equilibrium at Y₁ in panel (b), the economy is in:

An inflationary gap occurs when potential output is above actual aggregate output.

Stagflation is a combination of _ unemployment and _ inflation.

Use the following to answer questions: Figure: AD-AS Model II -(Figure: AD-AS Model II) Refer to Figure: AD-AS Model II. When consumers and firms become more optimistic, in the short run the _ curve will shift to the _.

Suppose that an economy is in an inflationary gap in the short run. In the long run:

When the price level increases, firms in perfectly competitive markets usually have an increase in profit per unit and increase output.

Use the following to answer questions: Figure: Policy Alternatives -(Figure: Policy Alternatives) Refer to Figure: Policy Alternatives. If the economy is in equilibrium at Y₁ in panel (b) and the government does not intervene, the result will likely be a shift of:

Short-run aggregate supply increases when producers are willing to supply more at any given price level.

Use the following to answer questions: Figure: AD-AS Model I -(Figure: AD-AS Model I) Refer to Figure: AD-AS Model I. If the economy is at point X, the appropriate monetary policy is to:

An increase in the nominal wage will increase potential output.

Potential output would NOT be increased by:

If the short-run macroeconomic equilibrium is to the ___ of the economy's potential output, then there is a(n) _ gap and the aggregate price level is expected to ___.

The short-run aggregate supply curve is:

The short-run aggregate supply curve is:

Use the following to answer questions: Figure: Shifts of the AD-AS Curves -(Figure: Shifts of the AD-AS Curves) Refer to Figure: Shifts of the AD-AS Curves. An increase in wages in the short run is illustrated by panel:

As a result of a sharp decrease in aggregate demand between 1929 and 1933, the unemployment rate changed from _% in 1929 to _% in 1933.

Use the following to answer questions: Figure: AD-AS Model II -(Figure: AD-AS Model II) Refer to Figure: AD-AS Model II. If the value of household wealth increases, the _ curve will shift to the _.

Suppose the economy is operating in long-run equilibrium and a positive demand shock hits. We expect a short-run increase in real GDP and the price level and a long-run _ in real GDP and _ the price level.

Suppose that political instability in the Middle East interrupts the supply of oil. The ___ curve shifts _, output _, and prices ___.

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Price Controls and Quotas: Meddling With Markets

International Trade

Macroeconomics: the Big Picture

GDP and the CPI: Tracking the Macroeconomy

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial Syst

Income and Expenditure

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Filters

Exam 12: Aggregate Demand and Aggregate Supply

Use the following to answer questions: Figure: Inflationary and Recessionary Gaps -(Figure: Inflationary and Recessionary Gaps) Refer to Figure: Inflationary and Recessionary Gaps. If the economy is in short-run equilibrium at Y1 in panel (b), the economy is in:

An inflationary gap occurs when potential output is above actual aggregate output.

Stagflation is a combination of _____ unemployment and _____ inflation.

Use the following to answer questions: Figure: AD-AS Model II -(Figure: AD-AS Model II) Refer to Figure: AD-AS Model II. When consumers and firms become more optimistic, in the short run the _____ curve will shift to the _____.

Suppose that an economy is in an inflationary gap in the short run. In the long run:

When the price level increases, firms in perfectly competitive markets usually have an increase in profit per unit and increase output.

Use the following to answer questions: Figure: Policy Alternatives -(Figure: Policy Alternatives) Refer to Figure: Policy Alternatives. If the economy is in equilibrium at Y1 in panel (b) and the government does not intervene, the result will likely be a shift of:

Short-run aggregate supply increases when producers are willing to supply more at any given price level.

Use the following to answer questions: Figure: AD-AS Model I -(Figure: AD-AS Model I) Refer to Figure: AD-AS Model I. If the economy is at point X, the appropriate monetary policy is to:

An increase in the nominal wage will increase potential output.

Potential output would NOT be increased by:

If the short-run macroeconomic equilibrium is to the _____ of the economy's potential output, then there is a(n) _____ gap and the aggregate price level is expected to _____.

The short-run aggregate supply curve is:

The short-run aggregate supply curve is:

Use the following to answer questions: Figure: Shifts of the AD-AS Curves -(Figure: Shifts of the AD-AS Curves) Refer to Figure: Shifts of the AD-AS Curves. An increase in wages in the short run is illustrated by panel:

As a result of a sharp decrease in aggregate demand between 1929 and 1933, the unemployment rate changed from _____% in 1929 to _____% in 1933.

Use the following to answer questions: Figure: AD-AS Model II -(Figure: AD-AS Model II) Refer to Figure: AD-AS Model II. If the value of household wealth increases, the _____ curve will shift to the _____.

Suppose the economy is operating in long-run equilibrium and a positive demand shock hits. We expect a short-run increase in real GDP and the price level and a long-run _____ in real GDP and _____ the price level.

Suppose that political instability in the Middle East interrupts the supply of oil. The _____ curve shifts _____, output _____, and prices _____.

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Price Controls and Quotas: Meddling With Markets

International Trade

Macroeconomics: the Big Picture

GDP and the CPI: Tracking the Macroeconomy

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial Syst

Income and Expenditure

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Filters

Use the following to answer questions: Figure: Inflationary and Recessionary Gaps -(Figure: Inflationary and Recessionary Gaps) Refer to Figure: Inflationary and Recessionary Gaps. If the economy is in short-run equilibrium at Y₁ in panel (b), the economy is in:

Stagflation is a combination of _ unemployment and _ inflation.

Use the following to answer questions: Figure: AD-AS Model II -(Figure: AD-AS Model II) Refer to Figure: AD-AS Model II. When consumers and firms become more optimistic, in the short run the _ curve will shift to the _.

Use the following to answer questions: Figure: Policy Alternatives -(Figure: Policy Alternatives) Refer to Figure: Policy Alternatives. If the economy is in equilibrium at Y₁ in panel (b) and the government does not intervene, the result will likely be a shift of:

If the short-run macroeconomic equilibrium is to the ___ of the economy's potential output, then there is a(n) _ gap and the aggregate price level is expected to ___.

As a result of a sharp decrease in aggregate demand between 1929 and 1933, the unemployment rate changed from _% in 1929 to _% in 1933.

Use the following to answer questions: Figure: AD-AS Model II -(Figure: AD-AS Model II) Refer to Figure: AD-AS Model II. If the value of household wealth increases, the _ curve will shift to the _.

Suppose the economy is operating in long-run equilibrium and a positive demand shock hits. We expect a short-run increase in real GDP and the price level and a long-run _ in real GDP and _ the price level.

Suppose that political instability in the Middle East interrupts the supply of oil. The ___ curve shifts _, output _, and prices ___.