Exam 10: Aggregate Supply and Aggregate Demand

-In the above figure, B is the current long-run aggregate supply curve and E is the current short-run aggregate supply curve. If there is an increase in the full-employment quantity of labor, then the long-run aggregate supply curve and the short-run aggregate supply curve

-The reason that it is possible for the economy in the above figure to be at equilibrium point E₂ rather than at equilibrium point E₁ is that

-In the above figure, the economy will be at full employment if the price level

The quantity of real GDP demanded equals $18.4 trillion when the price level is 95. If the price level falls to 90, the quantity of real GDP demanded equals

In the short-run, real GDP can be greater than or less than potential GDP because in the short run the

Substitution effects help explain the slope of the aggregate demand curve. One substitution effect refers to the

The U.S. exchange rate rises. As a result, there is a

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

Long-run aggregate supply will decrease for all of the following reasons EXCEPT

-In the above figure, the short-run aggregate supply curve is SAS₁. If the prices of resources fall, there is

The aggregate demand curve shows

In the short-run macroeconomic equilibrium

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

When the economy is at an above-full-employment equilibrium,

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

-The curve labeled A in the above figure is

Which of the following shifts the aggregate demand curve rightward?

Which of the following events shifts the aggregate demand curve leftward?

According to the intertemporal substitution effect, when the price level increases, the interest rate

Give examples of factors that decrease aggregate demand. Which way does the aggregate demand curve shift?