Exam 12: Aggregatedemand and Aggregate Supply

"Sticky prices" refer to the fact that:

If consumption increases, the aggregate demand curve will:

When the economy experiences a permanent supply side shock that shifts the long-run aggregate supply curve to the right, the short-run aggregate supply curve will:

When the U.S. price level increases, we would expect a(n) _______ the aggregate demand curve.

Suppose OPEC announces it will be expanding the production of oil, decreasing its cost in the world market. How would this be represented in the AD/AS model?

Which component of GDP is not correlated with the price level?

When the economy is operating at a point where aggregate demand equals short-run aggregate supply:

If U.S. prices increase relative to the rest of the world, what effect would we expect to see on traded goods?

In macroeconomics, the long run refers to:

The aggregate demand curve:

If the government implements a new, more stringent minimum wage law, we would expect the _______ aggregate supply curve to shift to the _______.

In the long run, changes in the prices of goods and services have no effect on:

A spike in oil prices caused by labor disputes would shift the:

If a natural disaster causes a negative long-run supply shock to the economy, the new equilibrium will occur at a _______ price level and _______ level of output once the economy adjusts.

In the short run, the aggregate supply curve:

The figure shown displays various economic outcomes. If the aggregate demand curve shifts from AD₁ to AD₂, the resulting price and output in the short run would be:

Which of the following is not a property of the aggregate demand curve?

A decrease in the price level will cause:

When a nonprice change affects any of the four components of GDP, the:

The figure shown displays various economic outcomes. If the aggregate demand curve shifts from AD₂ to AD₁, the resulting price and output in the long run would be: