Exam 27: Bringing in the Supply Side: Unemployment and Inflation?

A shift outward of the aggregate supply curve could be caused by

The primary effect of OPEC actions in the period from 1973 to 1980 was to increase

The federal government increases spending by $50 billion and the main effect is an increase in the price level.It must be true that the economy is operating on the

A change in the aggregate price level moves the economy along a given aggregate supply curve.

When inflation occurs, net exports will

Most economists agree that the economy will adjust to a recessionary gap, but the adjustment process

The general shape of the aggregate supply curve is

If the MPC of an economy is .90 and the economy has a horizontal aggregate supply curve, then an increase in investment spending of $50 million will increase total income by

Economists believed that the U.S.economy had a (n) ____ in 2006 and 2007.

A severe hurricane hits Florida, destroying large amounts of the citrus crop.What is the most likely effect of this on aggregate supply?

Increases in the prices of imported energy in 2002-2008 caused the aggregate supply curve to shift inward.

Using the concepts of aggregate demand and aggregate supply, explain how the economy reaches an equilibrium level of real GDP and price level.

Profit per unit can be expressed as price - cost per unit.

Figure 10-7 -Which of the panels in Figure 10-7 shows an economic expansion caused primarily by a change in aggregate demand?

The concept of aggregate supply is a

Figure 10-6 -In Figure 10-6, which graph best illustrates an adverse supply shock accompanied by an increase in government spending?

If aggregate quantity supplied exceeds aggregate quantity demanded, we can expect an unplanned

Figure 10-1 -If the price level in Figure 10-1 were 120,

If the price level decreases, what will happen to the level of real GDP supplied?

If short-run equilibrium GDP is above potential GDP, prices will eventually rise.