Exam 11: Aggregate Supply and Aggregate Demand

The table gives the aggregate demand and aggregate supply schedules for a nation. -The table above gives data for the nation of Pearl, a small island in the South Pacific. If a supply shock decreases the quantity of real GDP supplied by $6 billion at each price level, the new equilibrium real GDP is

Which of the following shifts the aggregate supply curve leftward?

The aggregate demand curve shifts when any of the following factors change EXCEPT

When cost-push inflation starts, real GDP ________ and the unemployment rate ________.

If the economy is at macroeconomic equilibrium, then real GDP

-In the figure above, the economy is at an equilibrium with real GDP of $16 trillion and a price level of 110. At this point there is

Initially, demand-pull inflation will

Suppose that the money prices of raw materials increase so that short-run aggregate supply decreases. If the Reserve Bank does NOT respond, the higher money price of raw materials will i. repeatedly shift the aggregate demand curve rightward and raise the price level. ii. shift the aggregate demand curve rightward and the aggregate supply curve leftward, raising prices. iii. result initially in lower employment and a higher price level.

-In the figure above, as the price level increases, the aggregate demand curve will

A reason why an increase in the price level decreases the quantity of real GDP demanded is that

-The change in potential real GDP and aggregate supply shown in the graph above can be a result of

Sherri lives in Canada and is considering buying a new sofa. If the price level in Canada falls and the price level in the United States does not change, Canadian manufactured sofas are relatively

If the aggregate demand curve and the aggregate supply curve intersect at a level of real GDP greater than potential GDP, there is

If the AD curve shifts rightward while the AS curve and potential GDP don't change, then

A rise in the price level brings a ________ in the real wage rate that ________ profits which leads to ________ production.

The table gives the aggregate demand and aggregate supply schedules for a nation. -The table above gives data for the nation of Pearl, a small island in the South Pacific. When the economy is at full employment the price level is

If the Chinese economy enters a recession,

By itself, an increase in the price of oil shifts the

Cost-push inflation can start with

Stagflation is defined as a period when real GDP ________ and the price level ________.