Exam 10: Aggregate Supply and Aggregate Demand

-In the above figure, the short-run equilibrium will eventually adjust to a long-run equilibrium with a

In the first half of 2008, food and energy costs in the United States increased. At the same time, the financial crisis slowed production as firms predicted lower profits. A ________ macroeconomist would support the use of ________.

An aggregate supply curve depicts the relationship between

-Use the figure above to answer this question. At a price level of 90

In a change to immigration policy during 2012, "people younger than 30 who came to the United States before the age of 16, pose no criminal or security threat, and were successful students or served in the military can get a two-year deferral from deportation", then-Homeland Security Secretary Janet Napolitano said, according to CNN, 06/16/2012. If many of these immigrants had previously been afraid to work, now as a result of being able to work legally

If the economy is in long run equilibrium and then aggregate demand increases, in the long run the increase in aggregate demand means that the

Which of the following is TRUE about the long-run aggregate supply curve?

The U.S. aggregate demand curve shifts leftward if

In a short-run macroeconomic equilibrium, real GDP exceeds potential GDP. If aggregate demand does not change, then the

-In the above figure, which point corresponds to an increase in technology?

In the first half of 2008, food and energy costs in the United States increased. At the same time, the financial crisis slowed production. As a result, economists warned that the economy would

One reason that the aggregate demand curve has a negative slope is because

The short-run aggregate supply curve shifts because of changes in all of the following EXCEPT

Compare the policy prescriptions of Keynesian, Classical, and Monetarist economists.

-In the above figure, B is the current long-run aggregate supply curve and E is the current short-run aggregate supply curve. Technological advances mean the long-run aggregate supply curve and the short-run aggregate supply curve

An increase in the quantity of money shifts the aggregate demand curve rightward.

A Keynesian economist believes that

If higher inflation is expected in the future, then the

Which of the following shifts the aggregate demand curve rightward?

-The data in the above table indicate that the economy will be in a short-run macroeconomic equilibrium at a price level