Exam 10: Aggregate Supply and Aggregate Demand

The level of output at which the short-run aggregate supply curve and the aggregate demand curve intersect is the full-employment level of GDP.

In the macroeconomic long run

-In the above figure, when the economy is in a long-run equilibrium, the price level will be

In the short run, a supply shock that shifts the short-run aggregate supply curve leftward raises the price level and decreases real GDP.

The short-run aggregate supply curve shifts leftward when the

Aggregate demand is the relationship between the quantity of real GDP demanded and the

The short-run aggregate supply curve

Which of the following statement regarding aggregate supply is CORRECT?

Which of the following changes does NOT shift the long-run aggregate supply curve?

A decrease in the price level accompanied by no change in the money wage rate leads to ________ movement along the ________ aggregate supply curve.

A decrease in foreign incomes

The short-run aggregate supply curve

All of the following shift the short-run aggregate supply curve EXCEPT

The quantity of real GDP supplied depends on the

An increase in the quantity of capital shifts both the long-run and short-run aggregate supply curves.

Which of the following would NOT shift the U.S. aggregate demand curve?

-In the above figure, suppose the economy had been at point A and now is at B. What could have led to the movement to B?

Inflation occurs over time as a result of

The short-run aggregate supply curve is upward sloping because in the short run the

When talking about aggregate supply, it is necessary to