Exam 10: Aggregate Supply and Aggregate Demand

As world economies start to recover from the 2008 financial crisis and firms expect profits to increase

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

A decrease in government transfer payments

Which of the following shifts the aggregate demand curve rightward?

In 2008, Japan's government approved a $1 trillion fiscal stimulus plan comprised of both tax cuts and government expenditure increases. As a result

Which school of thought believes that real GDP always equals potential GDP?

If the money price of a resource such as oil falls, then the

In the short run, a rightward shift of the short-run aggregate supply curve ________ real GDP and ________ the price level.

-Based on the table above, a) What is the equilibrium price level and real GDP? b) If potential GDP is $11.0 trillion, what does that imply about the economy's level of employment? c) If potential GDP is $9.0 trillion, what does that imply about the economy's level of employment?

-Using the data in the above table, in the long-run macroeconomic equilibrium, the price level is ________ and the level of real GDP is ________.

Which of the following shifts the short-run aggregate supply curve? I. changes in the size of the labor force II. changes in the money wage rate

Which of the following shifts the aggregate demand curve rightward?

The SAS curve shifts if there is a change in the price level.

Consider a BMW automobile plant. If the price of BMWs increase by 10 percent and the money wage rate and other costs ________, there will be ________.

For movements along the long-run aggregate supply curve

By using only the aggregate demand curve, we can determine

-In the above figure, point A represents

Which of the following statements CORRECTLY describes the policy stance of a macroeconomist?

-The data in the above table indicate that when the price level is 100

If real GDP is less than potential GDP, then the economy is ________ equilibrium.