Exam 12: Aggregatedemand and Aggregate Supply

If the aggregate demand curve shifts, moving the economy out of long-run equilibrium:

Who will increase spending as the price level decreases?

Which three macroeconomic variables together best describe the health of the economy?

One major difference between the aggregate supply curve and an individual supply curve is the aggregate supply curve represents:

In 2009, the U.S. government passed a bill that increased government spending. In response, the aggregate demand curve most likely:

A decrease in the price of oil will shift the:

An increase in consumer confidence will:

A vertical supply curve reflects:

In general, a _______ relationship exists between the price level and _______.

Which of the following would likely cause the aggregate demand curve to shift to the left?

An example of stimulus spending by the government might be:

The slope of the short-run aggregate supply curve indicates that:

If the government lowers taxes by $400 billion, and the MPC is 0.75, the change in GDP will be:

If prices were to _______, U.S. goods would become relatively less expensive than goods from other countries.

The relationship between the overall price level and total production by firms is shown in the:

When the housing bubble popped in 2007, combined demand and supply side shocks:

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

During a recession, analysts at the CBO project that the economy is operating $750 billion below potential output. Assuming the MPC is 0.6, by how much would the government have to cut taxes to restore potential output?

All else equal, a shift in the aggregate supply curve _______ price and _______ output.

If the government lowers taxes by $400 billion, and the MPC is −0.75, the change in GDP will be: