Exam 10: Aggregate Supply and Aggregate Demand

-In the above figure, if aggregate demand does not change, the short-run equilibrium will

-The data in the above table indicate that when the price level is 120

-In the above figure, which part corresponds to an increase in the money wage rate?

The long-run aggregate supply curve is

What are the components of fiscal policy? Explain how fiscal policy affects aggregate demand.

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

-In the above figure, the economy is at point A when changes occur. If the new equilibrium has a price level of 120 and real GDP of $17.0 trillion, then it must be the case that

-In the above figure, the economy is initially at point B. If the Fed decreases the quantity of money, there is

An above-full-employment equilibrium occurs when

The Federal Reserve lowers interest rates. As a result, in the short run, real GDP ________ and the price level ________.

-In the above figure, the economy is initially at point B. If the government decreases transfer payments, there is

-In the above figure, the economy initially is at point C. Then the domestic price level rises by 10. A

A monetarist economist believes that

The government increases taxes. As a result, in the short run, real GDP ________ and the price level ________.

-In the above figure, what is the short-run equilibrium real GDP and the short-run equilibrium price level?

Aggregate demand increases if the quantity of money

Which school of thought believes that recessions are the result of inappropriate monetary policy?

-The curve labeled A in the above figure is a

In the short run, an increase in aggregate demand

-The above figure depicts an economy