Exam 10: Aggregate Supply and Aggregate Demand

Which of the following decreases aggregate demand?

-In the above figure, if the economy is at point A, which of the following is TRUE?

For movements along the long-run aggregate supply curve

If the world economy expands so that foreign demand for U.S.-made goods increases, in the short run what will happen to aggregate demand, the price level, and real GDP in the U.S.?

The data in the above figure indicate that the economy will be in a long-run macroeconomic equilibrium at a price level of

Moving along the aggregate demand curve, a decrease in the quantity of real GDP demanded is a result of

A change in ________ creates a movement along the aggregate demand curve but does not shift the aggregate demand curve.

The AD curve shows the sum of

An increase in the amount of human capital ________ the short-run aggregate supply curve and ________ the long-run aggregate supply curve.

The short-run aggregate supply curve shifts when I. the full-employment quantity of capital changes. II. technology advances.

An increase in government expenditure on goods and services

-In the above figure, the curve labeled A shifts rightward if

People expect that the El Niño effect will cause drought in Australia in coming years. If most Australian firms expect that their profits will fall during the next five years, Australia's ________ this year.

The short-run aggregate supply curve is upward sloping because

An inflationary gap occurs when

-An inflationary gap means that the level of real GDP at the short-run macroeconomic equilibrium

Business cycles are the result of

Moving upward along the short-run aggregate supply curve results in a ________ in the price level and ________ in real GDP.

-The curve labeled A in the above figure will shift rightward when

The aggregate demand curve shows that, if other factors are held constant, the higher the price level, the