Exam 10: Aggregate Demand and Supply

Explore all topics

Why does the aggregate demand (AD)curve slope downward? What could cause the AD curve to shift to the right? What impact would a rightward shift of the AD curve have on the economy?

(Essay)

4.9/5

(35)

Question 121

Exhibit 10-7 Aggregate supply and demand curves In Exhibit 10-7, if aggregate demand increases from AD₁ to AD₂,

(Multiple Choice)

4.9/5

(29)

Question 122

Excessive government spending can cause demand-pull inflation.

(True/False)

4.8/5

(35)

Question 123

When the economy is experiencing high inflation and high unemployment at the same time, then it is experiencing:

(Multiple Choice)

4.8/5

(37)

Question 124

The horizontal segment of the aggregate supply curve:

(Multiple Choice)

4.9/5

(42)

Question 125

Along the classical or vertical range of the aggregate supply curve, an increase in the aggregate demand curve will increase:

(Multiple Choice)

4.9/5

(35)

Question 126

The classical approach to a downturn in the business cycle was for the government to do nothing.

(True/False)

4.9/5

(30)

Question 127

Along the Keynesian range of the aggregate supply curve, an increase in the aggregate demand curve will increase:

(Multiple Choice)

4.8/5

(34)

Question 128

Which of the following would cause a rightward shift in the aggregate supply curve?

(Multiple Choice)

4.8/5

(39)

Question 129

According to classical macroeconomic theory, if real GDP is below the full-employment level, then an increase in aggregate demand will result in which of the following changes in equilibrium?

(Multiple Choice)

4.8/5

(45)

Question 130

Which of the following is not a reason for the downward slope of an aggregate demand curve?

(Multiple Choice)

5.0/5

(35)

Question 131

The aggregate supply curve relating the price level to real GDP has three distinguishing segments. Which one of the following indicates the segments?

(Multiple Choice)

4.9/5

(39)

Question 132

Exhibit 10-8 Aggregate demand and supply In Exhibit 10-8, if aggregate demand shifts from AD₁ to AD₃,

(Multiple Choice)

4.8/5

(32)

Question 133

Which of the following will most likely cause an increase in the aggregate supply curve?

(Multiple Choice)

4.8/5

(38)

Question 134

To illustrate the classical argument that "supply creates its own demand," the aggregate supply curve should be drawn:

(Multiple Choice)

4.8/5

(31)

Question 135

If a new method for obtaining oil from dry oil fields is found, then we will see:

(Multiple Choice)

4.8/5

(41)

Question 136

The real balances effect predicts that higher prices:

(Multiple Choice)

4.9/5

(38)

Question 137

An increase in total spending in the economy will shift the aggregate demand curve to the left.

(True/False)

5.0/5

(39)

Question 138

The aggregate supply curve will shift to the right when the:

(Multiple Choice)

4.9/5

(27)

Question 139

The interest rate effect predicts that higher prices:

(Multiple Choice)

4.9/5

(45)

Question 140

Showing 121 - 140 of 187

Exam 10: Aggregate Demand and Supply

Why does the aggregate demand (AD)curve slope downward? What could cause the AD curve to shift to the right? What impact would a rightward shift of the AD curve have on the economy?

Exhibit 10-7 Aggregate supply and demand curves In Exhibit 10-7, if aggregate demand increases from AD1 to AD2,

Excessive government spending can cause demand-pull inflation.

When the economy is experiencing high inflation and high unemployment at the same time, then it is experiencing:

The horizontal segment of the aggregate supply curve:

Along the classical or vertical range of the aggregate supply curve, an increase in the aggregate demand curve will increase:

The classical approach to a downturn in the business cycle was for the government to do nothing.

Along the Keynesian range of the aggregate supply curve, an increase in the aggregate demand curve will increase:

Which of the following would cause a rightward shift in the aggregate supply curve?

According to classical macroeconomic theory, if real GDP is below the full-employment level, then an increase in aggregate demand will result in which of the following changes in equilibrium?

Which of the following is not a reason for the downward slope of an aggregate demand curve?

The aggregate supply curve relating the price level to real GDP has three distinguishing segments. Which one of the following indicates the segments?

Exhibit 10-8 Aggregate demand and supply In Exhibit 10-8, if aggregate demand shifts from AD1 to AD3,

Which of the following will most likely cause an increase in the aggregate supply curve?

To illustrate the classical argument that "supply creates its own demand," the aggregate supply curve should be drawn:

If a new method for obtaining oil from dry oil fields is found, then we will see:

The real balances effect predicts that higher prices:

An increase in total spending in the economy will shift the aggregate demand curve to the left.

The aggregate supply curve will shift to the right when the:

The interest rate effect predicts that higher prices:

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Gross Domestic Product

Business Cycles and Unemployment

Inflation

The Keynesian Model

The Keynesian Model in Action

Fiscal Policy

The Public Sector

Federal Deficits, Surpluses, and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

The Phillips Curve and Expectations Theory

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Applying Graphs to Economics

Consumer Surplus, Producer Surplus, and Market Efficiency

the Self-Correcting Aggregate Demand and Supply Model

Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

Filters

Exhibit 10-7 Aggregate supply and demand curves In Exhibit 10-7, if aggregate demand increases from AD₁ to AD₂,

Exhibit 10-8 Aggregate demand and supply In Exhibit 10-8, if aggregate demand shifts from AD₁ to AD₃,