Exam 33: Aggregate Demand and Aggregate Supply

Suppose the economy is in long-run equilibrium. If there is a sharp decline in government purchases combined with a significant increase in immigration of skilled workers, then in the short run,

According to the aggregate demand and aggregate supply model, in the long run a decrease in the money supply leads to

Other things the same, a decrease in the price level causes real wealth to

The long-run aggregate supply curve would shift left if the amount of labor available

On average, over the last 50 years, real GDP has grown by about ​

The aggregate-demand curve shows the

Assuming that a is positive, theories of short-run aggregate supply are expressed mathematically as

Most economists believe that in the short run

When the money supply increases

Which of the following shifts aggregate demand to the right?

An economic expansion caused by a shift in aggregate demand causes prices to

When output rises, unemployment falls.

Refer to Stock Market Boom 2015. Which curve shifts and in which direction?

Other things the same, when the price level rises, interest rates

According to the classical model, an increase in the money supply causes

Suppose the economy is in long-run equilibrium. If there is an increase in government purchases at the same time there is a large increase in the price of oil, then in the short-run

Other things the same, if the price level rises, then domestic interest rates

Figure 33-5. -Refer to Figure 33-5. Starting from point B and assuming that aggregate demand is held constant, in the long run the economy is likely to experience

Which of the following shifts the short-run aggregate supply curve right?

Which of the following is correct?