Exam 12: Aggregatedemand and Aggregate Supply

Suppose new immigration legislation permanently limits the number of people who are able to enter the country through H1-B visas. Which type of shock would this legislation cause?

The aggregate supply and aggregate demand model describes the interaction of which macroeconomic variables?

The figure shown displays various economic outcomes. If the aggregate demand curve shifts from AD₂ to AD₃, the resulting price and output in the long run would be:

The long-run aggregate supply curve is:

Higher interest rates occur at higher price levels, which explains the _______ relationship between the price level and investment spending.

If prices increase in the United States only, then:

Aggregate supply is the market value of the total quantity of:

To counteract the effects of a recession, policymakers can:

The figure shown displays various economic outcomes. If the aggregate demand curve shifts from AD₃ to AD₂, the resulting price and output in the short run would be:

The wealth effect partially explains why the aggregate _______ curve is _______.

A reduction in the amount of land a nation has that is capable of growing crops would cause the _______ aggregate supply curve to shift to the _______.

If the government decides not to respond to a negative supply shock, the economy will:

Which of the following macroeconomic variables is perfectly inelastic?

If a hurricane were to destroy the major oil refineries on the Gulf Coast, it would likely cause a:

Sticky wages cause the short-run aggregate supply curve to:

The long-run aggregate supply curve represents the level of output possible if the economy:

An increase in a nation's education level would cause the _______ aggregate supply curve to shift to the _______.

Demand-side shifts change:

If the aggregate demand curve shifts to the left, the long-run equilibrium will occur at a _______ price level and _______ level of output.

Expenditures by _______ will remain unaffected as the U.S. price level increases.