Exam 33: Aggregate Demand and Aggregate Supply

Imagine two economies that are identical except that for a long time,economy A has had a money supply of $1,000 billion while economy B has had a money supply of $500 billion.It follows that

Figure 33-2. -Refer to Figure 33-3.Suppose the economy starts at Z.Stagflation would be consistent with the move to

Figure 20-2. -Refer to Optimism.How is the new long-run equilibrium different from the original one?

The sticky-wage theory of the short-run aggregate supply curve says that when the price level rises more than expected,

Other things the same,as the price level rises,the real value of a dollar

Other things the same,if the price level falls,domestic interest rates

Which of the following will both make people buy more?

Make a list of things that would shift the aggregate demand curve to the right.

Aggregate demand includes

Aggregate demand shifts left if

As the price level rises

Policymakers who influence aggregate demand can potentially mitigate the severity of economic fluctuations.

Other things the same,an increase in the price level makes the dollars people hold worth

Real GDP

Stagflation results from continued decreases in aggregate demand.

Other things the same,continued increases in the money supply lead to

The downward slope of the aggregate demand curve is based on logic that as the price level rises,consumption,investment,and net exports all fall.

Which of the following shifts both the short-run and long-run aggregate supply right?

If countries that imported goods and services from the United States went into recession,we would expect that U.S.net exports would

Which of the following decreases in response to the interest-rate effect from an increase in the price level?