Exam 13: The Aggregate Demandaggregate Supply Model

When a change in the price level leads to a change in the interest rate and thus a change in the quantity of aggregate demand, it is called the ____effect.

The table identifies annual gross domestic product (GDP)( in billions of dollars) for country X. Year GDP Year GDP 2006 1,107 2011 2,614 2007 1,397 2012 2,460 2008 1,695 2013 2,465 2009 1,667 2014 2,417 2010 2,208 2015 1,774 Based on the table, during which years) was the country in a recession?

The table identifies annual gross domestic product (GDP) in billions of dollars) for country X. Year Year GDP Year GDP 2006 1,107 2011 2,614 2007 1,397 2012 2,460 2008 1,695 2013 2,465 2009 1,667 2014 2,417 2010 2,208 2015 1,774 Based on the table, during which years(s) was country X most likely to have been in a recession?

Which of the following would affect both short-run and long-run aggregate supply?

A technological advance leads to a shift in

Suppose people are worried about losing their jobs. In the short run, this will

An increasing number of firms decide to install tablets and computers so that customers are able to order and pay on their own. This can be expected to_______ investment spending by the firms. At the same time we can expect the unemployment rate to ______and consumption spending to______ . Overall the effect on gross domestic product (GDP) is ______.

Explain and illustrate how the short-run and long-run equilibrium levels of output and the price level are affected by legislation that increases the employer's cost of providing health care to workers.

Supply shocks always cause short-run aggregate supply to

Starting from long-run equilibrium, draw an aggregate demand-aggregate supply graph to illustrate the difference between a long-run and a short-run equilibrium due to an increase in aggregate demand. Once the economy is in the short-run equilibrium, explain-but it's not necessary to illustrate-how long-run equilibrium will be restored.

The economy is in short-run equilibrium when

Which of the following would cause an increase in long-run aggregate supply?

Refer to the following figure to answer the next questions. -Based on the figure, if the economy is initially at point B and new technology leads to an increase in labor productivity, then in the long run we will end up at point

A supply shock is defined as

Refer to the following figure to answer the next questions. -Based on the figure, starting at point A, if there is an increase in the price of oil, then in the short run we move to point ______and in the long run to point_____ .

A decrease in aggregate demand is harmful in the short run because _______but not in the long run because _______.

Suppose that an increase in the price level reduces the value of real wealth, which then causes a reduction in consumption but no change in saving. In this case, there is

Which of the following is true about recessions in the United States?

When U.S. goods become more expensive relative to foreign goods, exports will ____and imports will ______.

China's working-age population is expected to decline in the next 20 years. In the long run, we can expect this to