Exam 13: Business Fluctuations: Aggregate Demand and Supply

High oil prices tend to:

The long-run aggregate supply curve shows that long-run economic growth:

An unexpected increase in money growth increases inflation but not real growth in the long run.

Which of the following would shift the long-run aggregate supply curve to the right?

The aggregate demand curve indicates that at a given spending growth rate, a higher inflation is related to a:

Each aggregate demand curve contains only one combination of inflation and real growth that leads to a distinct level of spending.

A reduction in the supply of oil is a real shock because it:

Which of the following is an example of a shock that shifts the long-run aggregate supply curve to the right?

Other things held constant, an increase in the velocity of money will cause the aggregate demand curve to:

The short-run aggregate supply curve shows the relationship between the real growth rate and the:

Productivity shocks were the primary cause of the Great Depression.

Use the following to answer questions: Figure Real Shocks -(Figure: Real Shocks) From Point X in the accompanying graph, a negative supply shock could change the inflation rate to:

Compare two economies, one that is highly agricultural and another that is highly manufacturing-based. Discuss what types of shocks might be relevant to each of these economies.

The AD-AS model consists of the:

Using a graph of the AD and long-run aggregate supply curves, the Internet revolution of the 1990s caused:

If stock prices go up and people feel richer, aggregate demand will:

Which of the following would NOT shift the long-run aggregate supply curve?

A hurricane that damages buildings and roadways along the Gulf Coast is considered a:

Use the following to answer questions: Figure: Three AD Curves -(Figure: Three AD Curves) Beginning at Point A in the accompanying diagram, a negative money shock could result in a short-run growth rate of:

Prices are especially sticky in the: