Exam 9: Aggregate Demand and Supply

Which of these will shift the aggregate supply curve to the right?

A tax decrease on producers will shift the aggregate supply curve to the left.

The _____ measure(s) the proportion of additional income that consumers spend.

If national incomes of foreign countries fall at the same time the dollar appreciates, then in the United States, the aggregate demand curve

Falling interest rates mean increased business investment and a resulting increase in aggregate demand for real GDP in the aggregate economy.

_____ inflation occurs when aggregate demand expands so much that equilibrium output exceeds full employment output.

Rising input prices increase short-run aggregate supply.

When government spending rises

Which of these would cause an increase in a country's aggregate demand?

The Great Depression showed that the short-run aggregate supply curve and the aggregate demand curve

Cost-push inflation occurs when aggregate supply shifts to the right, causing the price level to increase along with rising unemployment.

_____ will MOST likely increase the economy's long-run aggregate supply.

_____ are components of consumer spending that affect aggregate demand.

Economic growth is shown as a _____ aggregate supply curve.

The real GDP that firms will produce at varying price levels is

The 1973 oil shocks created

Increased productivity causes the aggregate supply curve to shift to the left.

Demand-pull inflation is due to excessive spending on goods and services.

Which is a determinant of aggregate supply?

High family debt