Exam 10: Aggregate Supply and Aggregate Demand

Which of the following shifts both the short-run aggregate supply curve and the long-run aggregate supply curve? I. changes in the size of the labor force II. changes in the money wage rate III. changes in the quantity of capital

-In the above figure, point B depicts

A change in the money wage rate shifts

If the money prices of resources changes

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

An increase in the quantity of capital increases ________ and increase in the full-employment quantity of labor increases ________.

When the price level rises, the long-run aggregate supply curve

Last year in the country of Union, the price level increased and real GDP increased. Such an outcome might have occurred because short-run aggregate supply ________ and aggregate demand ________.

If aggregate demand decreases and neither short-run nor long-run aggregate supply changes, then

When an increase in aggregate demand exceeds the increase in aggregate supply

If the money prices of resources changes, the SAS curve shifts.

In 2008 the money wage rate in Ireland increased by 4 percent while the price level increased by 8 percent. As a result, Ireland's

The AS/AD model studies the relationship between

In 2009, just after taking office, President Obama approved an $800 billion stimulus package of tax cuts and increased government spending to combat the recession brought on by the financial crisis of 2007. Which group of economists most approved of President Obama's actions?

-The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. The short-run macroeconomic equilibrium is a price level of ________ and a real GDP of ________.

The long-run aggregate supply curve is vertical.

-In the above figure, the short-run aggregate supply curve is SAS₁. Suppose that the price level in the economy increases. As a result there is

If you have $5,000 in wealth and the price level decreases by 20 percent, then

-Based on the data in the table above, the economy will be in short-run equilibrium at a price level of

The country of Epsilon has continuous strong economic growth and a steady price level. This situation is most likely the result of aggregate demand growing ________ aggregate supply.