Exam 33: Aggregate Demand and Aggregate Supply

Suppose the economy is in long-run equilibrium.If there is a tax cut at the same time that major new sources of oil are discovered in the country,then in the short-run

Part of the explanation for why the aggregate-demand curve slopes downward is that a decrease in the price level

If the actual price level is 165,but people had been expecting it to be 160,then

From 2001 to 2005 there was a dramatic rise in the price of houses.If this rise made people feel wealthier,then it would have shifted

Which of the following adjust to bring aggregate supply and demand into balance?

Figure 20-2. -Refer to Optimism.Which curve shifts and in which direction?

Changes in the price level affect which components of aggregate demand?

Other things the same,continued increases in technology lead to

Which of the following did not happen during the onset of the Great Depression?

The division of variables into real and nominal is a dichotomy assumed by

Figure 20-2. -Refer to Stock Market Boom 2015.What happens to the expected price level and what impact does this have on wage bargaining?

Use sticky-wage theory to explain why an increase in the expected price level shifts the aggregate supply curve.

Keynes explained that recessions and depressions occur because of

Figure 33-1. -Refer to Figure 33-1.Suppose the economy starts at Y.If aggregate demand increases from AD₂ to AD₃,then the economy moves to

Other things the same,the aggregate quantity of output supplied will increase if the price level

Which of the following is correct?

If the dollar appreciates,perhaps because of speculation or government policy,then U.S.net exports

Figure 20-2. -Refer to Stock Market Boom 2015.How is the new long-run equilibrium different from the original one?

Historical evidence for the U.S.economy indicates that

During the 2008-2009 unemployment rose from about 4.4% to about