Exam 13: Business Fluctuations: Aggregate Demand and Supply

Which of the following would cause the AD curve to shift to the right?

Increased wealth represents a positive AD shock.

If $\pi$ > $\pi$ ^e:

The long-run aggregate supply curve is represented by a vertical line at the Solow growth rate because:

An economy can overcome a large negative oil shock faster if:

In recent years, negative oil price shocks have typically been accompanied by:

Which of the following is a real shock that contributed to the economic contraction during the Great Depression?

The U.S. Great Depression began in what year?

After the first oil shock in 1973, the U.S. auto industry had a difficult time adjusting because:

Which of the following would cause the AD curve to shift to the left?

The aggregate demand curve is:

During a recession:

From an initial equilibrium in the AD-AS model, an increase in consumption growth will initially cause inflation:

A recession is defined as a widespread decline in:

Stagflation is a situation in which increased unemployment and lower output growth is accompanied by an increase in inflation. Explain how a negative real shock can lead to stagflation.

Which of the following describes the process through which a major decline in the stock market leads to a change in aggregate demand?

If $\vec { v }$ = 4%, $\bar { P }$ = 3%, and $\bar { Y } _ { R }$ = 2%, then $\bar { M }$ Must equal:

An aggregate demand shock is a:

A significant, widespread decline in real income and employment is called:

Which of the following is NOT an example of a real shock?