Exam 32: Aggregate Demand and Aggregate Supply

In the accompanying table for a particular country, C is consumption expenditures, Ig is gross investment expenditures, G is government expenditures, X is exports, and M is imports.All figures are in billions of dollars.If the equilibrium level of real GDP is $43 billion, its level of consumption will be

Changes in which of the following would not shift the aggregate demand curve?

The expenditure multiplier concept of the aggregate expenditures model

With cost-push inflation in the short run, there will be

If investment increases by $10 billion and the economy's MPC is 0.8, the aggregate demand curve will shift

Which would most likely shift the aggregate supply curve? A change in the prices of

The shape of the short-run aggregate supply curve indicates that as the general price level rises, output will expand but not by much when the economy reaches full employment.

If personal income taxes and business taxes increase, then this will

An increase in wealth from a substantial increase in stock prices will move the economy along a fixed aggregate demand curve.

An increase in personal income tax rates will cause a(n)

In the mid-1970s, changes in oil prices greatly affected U.S.inflation.When oil prices rose, the U.S.experienced

The foreign purchases effect suggests that an increase in the U.S.price level relative to other countries will

An increase in the price level reduces the real value of financial assets with fixed money values, and, as a result, the holders of these assets decrease their spending.

An economy is employing 2 units of capital, 5 units of raw materials, and 8 units of labor to produce its total output of 640 units.Each unit of capital costs $10; each unit of raw materials, $4; and each unit of labor, $3.If the per-unit price of raw materials rises from $4 to $8 and all else remains constant, the per-unit cost of production will rise by about

Which of the following is a true statement?

The aggregate expenditures model and the aggregate demand curve can be reconciled because, other things equal, in the aggregate expenditures model,

Which of the following would not shift the aggregate supply curve?

In the accompanying table for a particular country, C is consumption expenditures, Ig is gross investment expenditures, G is government expenditures, X is exports, and M is imports.All figures are in billions of dollars.A decrease in the interest rate not caused by a change in the price level would

Cost-push inflation can be described as a rightward shift of the aggregate supply curve.

The fear of unwanted price wars may explain why many firms are reluctant to