Exam 13: Business Fluctuations: Aggregate Demand and Supply

An increase in inflation immediately causes a downward shift of the short-run aggregate supply curve.

Sticky wages minimize the effect of negative supply shocks.

A negative real shock leads to:

A real shock causes:

An increase in the growth rate of real output will cause the aggregate demand curve to shift to the right.

The real business cycle (RBC) model implies that:

If wages are not as flexible as prices in the AD-AS model, an increase in money growth will lead to:

In the AD-AS model, an unexpected increase in the growth rate of the money supply:

In a typical year, bad shocks outweigh good shocks, and the economy grows.

Workers are most familiar with the movement of:

If the growth rate of spending increases from 3% to 5%, then:

A recession is a significant, widespread decline in nominal income and employment.

In the equation $\vec { M } + \vec { v } = \vec { P } + \vec { Y } _ { R }$ , what does $\vec { v }$ Stand for?

When the United States experienced its first oil shock, employment shifted from Houston to Detroit.

A major hurricane hitting the East Coast of the United States is an example of a:

An increase in inflation will cause the long-run aggregate supply curve to:

Money is always neutral in the AD-AS model.

The "long run" is a period of time:

For a given aggregate demand curve, the specified rate of spending growth is the growth rate of money:

A temporary decrease in consumer spending causes: