Exam 10: Aggregate Supply and Aggregate Demand

People expect their incomes will decrease next year. As a result, the ________ will shift ________.

A change in the full-employment quantity of labor ________ the short-run aggregate supply curve and ________ the long-run aggregate supply curve.

If you have $1,000 of money in the bank and the price level rises by 5 percent, your

Which of the following events will increase long-run aggregate supply?

A monetarist economist believes that if the economy was left alone, it would rarely operate at full employment.

During an above-full-employment equilibrium, actual GDP is greater than potential GDP.

-In the above figure, point C represents

In 2008, Japan's economy suffered as world economies slowed. If authorities in Japan followed the monetarist viewpoint, ________ to bring the economy back to full employment.

-In the above figure, at the point where AD equals SAS

If the quantity of money increases, the

If the money wage rate and other resource prices do not change when the price level rises by 10 percent,

-In the above figure, at the price level of 140 and real GDP of

The short-run aggregate supply curve

In the long-run equilibrium, an increase in the quantity of capital leads to

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

The aggregate demand curve

-In the above figure, the short-run equilibrium is at the price level of ________ and real GDP of ________.

-In the above figure, the economy is at point A when changes occur. If the new equilibrium has a price level of 100 and real GDP of $19.0 trillion, then it must be the case that

In Japan in 2010 the price level fell by 5 percent and the money wage rate did not change. As a result, there was a

The intertemporal substitution effect of the price level on aggregate demand