Exam 13: Business Fluctuations: Aggregate Demand and Supply

Nominal wage confusion occurs when:

If spending grows by 3% while real growth is 1% and velocity is stable, then prices will be _____ at a rate of _____ according to the aggregate demand curve.

A real shock is a rapid change in economic conditions that affects the productivity of resources.

Which of the following factors would NOT cause aggregate demand to increase?

The short-run aggregate supply curve is:

Which statement best describes one of the profound effects of the 1973 oil crisis on the U.S. economy?

In the basic model that includes the AD and LRAS curves only, increased spending growth causes:

As a result of a positive shock to $\vec { C }$ :

The Solow growth rate is the economy's:

By 1932, the real growth rate of the U.S. economy was:

The economy's potential or "Solow" growth rate fluctuates over time because of:

The first oil shock to have a large impact on the U.S. economy came in:

Figure: Real Shocks From Point X in the accompanying graph, an increase in the supply of oil could cause the economy to move to Point:

As a result of an increase in expected inflation, the:

Which of the following does NOT contribute to an economy's long-run potential growth rate?

Which of the following is NOT a positive aggregate demand shock?

An unexpected increase in money growth leads to increased real GDP growth in:

Which of the following would cause the aggregate demand curve to shift to the right?

A slower money growth rate represents a positive AD shock.

The cost a business faces when changing prices in response to an economic shock is called: