Exam 33: Aggregate Demand and Aggregate Supply

The price level rises in the short run if

John Maynard Keynes advocated policies that would increase aggregate demand as a way to decrease unemployment caused by recessions.

Aggregate demand shifts to the left if the money supply increases.

Other things the same, what happens in the short run to the price level and quantity of output when the aggregate demand curve shifts to the left?

Other things the same, if the U.S. price level falls, then U.S. residents want to buy

A decrease in what variable will raise the quantity of goods and services supplied, and shift only the short run aggregate supply curve to the right?

In the long-run, an increase in aggregate demand increases the price level, but not real GDP.

The theory of short-run economic fluctuations is uncontroversial.​

Although wages, incomes, and interest rates are most often discussed in nominal terms, what matters most are their real values.

The explanations for the slopes of the aggregate demand and short-run aggregate supply curves are the same as the explanations for the slopes of demand and supply curves for specific goods and services.

An increase in the expected price level shifts

Make a list of expenditures whose sum equals GDP.

The sticky-wage theory of the short-run aggregate supply curve says that when the price level rises more than expected, production is

The long-run trend in real GDP is upward. How is this possible given business cycles? What explains the upward trend?

Using the aggregate demand and aggregate supply model, an increase in what curve is by itself consistent with the changes in prices and output that occurred during World War II?

In countries that have high minimum wages and require a lengthy and costly process to get permission to open a business,

The downward slope of the aggregate demand curve is based on logic that as the price level rises, consumption, investment, and net exports all fall.

Economists mostly agree that the Great Depression was principally caused by factors that shifted short-run aggregate supply left.

Investment is

The recession of 2008-2009 was in many ways the worst macroeconomic event in more than half a century.