Exhibit 14A-1 Aggregate demand and supply model Given the shift of the aggregate demand curve from AD1 to AD2 in Exhibit 14A-1, the real GDP and price level (CPI) in long-run equilibrium will be:

A) $8 billion and 150. B) $12 billion and 200. C) $8 billion and 250. D) $8 billion and 200. A) $8 billion and 150. B) $12 billion and 200. C) $8 billion and 250. D) $8 billion and 200. C

Exhibit 14A-5 Macro AD-AS Model Beginning in Exhibit 14A-5 from long-run equilibrium at point E1, the aggregate demand curve shifts to AD2. The economy's path to a new long-run equilibrium is represented by a movement from:

A) E1 to E2 to E3. B) E3 to E2 to E2. C) E1 to E3 to E2. D) E2 to E1 to E2. A) E1 to E2 to E3. B) E3 to E2 to E2. C) E1 to E3 to E2. D) E2 to E1 to E2.

Exam 14: Aggregate Demand and Supply

Exhibit 14A-1 Aggregate demand and supply model Given the shift of the aggregate demand curve from AD₁ to AD₂ in Exhibit 14A-1, the real GDP and price level (CPI) in long-run equilibrium will be:

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(Multiple Choice)

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Question 1

Correct Answer:

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Exhibit 14A-5 Macro AD-AS Model Economic growth is represented in Exhibit 14A-5 by a:

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(Multiple Choice)

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Question 2

Correct Answer:

Verified

Which of the following would cause a decrease (leftward shift) in the short-run aggregate supply curve (SRAS)?

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(Multiple Choice)

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Question 3

Correct Answer:

Verified

A decrease in nominal incomes cause a:

(Multiple Choice)

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Question 4

Beginning from a position of long-run equilibrium at the full-employment level of real GDP, the economy's short-run response to an increase in the aggregate demand curve would be:

(Multiple Choice)

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Question 5

Long-run full-employment equilibrium assumes:

(Multiple Choice)

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Question 6

In the short run, a price increase in the goods and services market measured by the CPI will:

(Multiple Choice)

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Question 7

The long-run aggregate supply curve (LRAS) is represented by a(n) ____ curve with respect to the CPI.

(Multiple Choice)

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Question 8

In the long run, an increase in aggregate demand causes the price level to and the long-run aggregate supply curve to .

(Multiple Choice)

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Question 9

If nominal wages and salaries are fixed as firms change product prices, the short-run aggregate supply curve is:

(Multiple Choice)

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Question 10

The full-employment level of real GDP is the level which can be produced with:

(Multiple Choice)

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Question 11

Economic growth can be represented by a(n):

(Multiple Choice)

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Question 12

Exhibit 14A-2 Macro AD-AS Model In Exhibit 14A-2, the short-run equilibrium depicts an economy:

(Multiple Choice)

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Question 13

Economic growth is measured by the percentage change in:

(Multiple Choice)

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Question 14

Exhibit 14A-5 Macro AD-AS Model Beginning in Exhibit 14A-5 from long-run equilibrium at point E₁, the aggregate demand curve shifts to AD₂. The economy's path to a new long-run equilibrium is represented by a movement from:

(Multiple Choice)

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Question 15

Exhibit 14A-3 Macro AD-AS Model In Exhibit 14A-3, the self-correction argument is that in the long run competition:

(Multiple Choice)

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Question 16

Beginning from a position of long-run equilibrium, suppose there is an increase in the aggregate demand curve. After adjustment and comparing the economy's new long-run equilibrium with its original long-run position, the result would be an increase in:

(Multiple Choice)

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Question 17

The long-run aggregate supply curve is:

(Multiple Choice)

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Question 18

Exhibit 14A-6 Aggregate demand and supply model As shown in Exhibit 14A-6, the economy's point of short-run equilibrium, given by the shift of the aggregate demand curve from AD₁ to AD₂, is:

(Multiple Choice)

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Question 19

A short-run aggregate supply curve (SRAS) assumes:

(Multiple Choice)

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Question 20

Showing 1 - 20 of 83

Exam 14: Aggregate Demand and Supply

Exhibit 14A-1 Aggregate demand and supply model Given the shift of the aggregate demand curve from AD1 to AD2 in Exhibit 14A-1, the real GDP and price level (CPI) in long-run equilibrium will be:

Exhibit 14A-5 Macro AD-AS Model Economic growth is represented in Exhibit 14A-5 by a:

Which of the following would cause a decrease (leftward shift) in the short-run aggregate supply curve (SRAS)?

A decrease in nominal incomes cause a:

Beginning from a position of long-run equilibrium at the full-employment level of real GDP, the economy's short-run response to an increase in the aggregate demand curve would be:

Long-run full-employment equilibrium assumes:

In the short run, a price increase in the goods and services market measured by the CPI will:

The long-run aggregate supply curve (LRAS) is represented by a(n) ____ curve with respect to the CPI.

In the long run, an increase in aggregate demand causes the price level to ____ and the long-run aggregate supply curve to ____.

If nominal wages and salaries are fixed as firms change product prices, the short-run aggregate supply curve is:

The full-employment level of real GDP is the level which can be produced with:

Economic growth can be represented by a(n):

Exhibit 14A-2 Macro AD-AS Model In Exhibit 14A-2, the short-run equilibrium depicts an economy:

Economic growth is measured by the percentage change in:

Exhibit 14A-5 Macro AD-AS Model Beginning in Exhibit 14A-5 from long-run equilibrium at point E1, the aggregate demand curve shifts to AD2. The economy's path to a new long-run equilibrium is represented by a movement from:

Exhibit 14A-3 Macro AD-AS Model In Exhibit 14A-3, the self-correction argument is that in the long run competition:

Beginning from a position of long-run equilibrium, suppose there is an increase in the aggregate demand curve. After adjustment and comparing the economy's new long-run equilibrium with its original long-run position, the result would be an increase in:

The long-run aggregate supply curve is:

Exhibit 14A-6 Aggregate demand and supply model As shown in Exhibit 14A-6, the economy's point of short-run equilibrium, given by the shift of the aggregate demand curve from AD1 to AD2, is:

A short-run aggregate supply curve (SRAS) assumes:

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets and Income Distribution

Gross Domestic Product

Business Cycles and Unemployment

Inflation

Fiscal Policy

The Public Sector

Federal Deficits, Surpluses, and the National Debt

Money and the Federal Reserve System

Money Creation

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

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Filters

Exhibit 14A-1 Aggregate demand and supply model Given the shift of the aggregate demand curve from AD₁ to AD₂ in Exhibit 14A-1, the real GDP and price level (CPI) in long-run equilibrium will be:

In the long run, an increase in aggregate demand causes the price level to and the long-run aggregate supply curve to .

Exhibit 14A-5 Macro AD-AS Model Beginning in Exhibit 14A-5 from long-run equilibrium at point E₁, the aggregate demand curve shifts to AD₂. The economy's path to a new long-run equilibrium is represented by a movement from:

Exhibit 14A-6 Aggregate demand and supply model As shown in Exhibit 14A-6, the economy's point of short-run equilibrium, given by the shift of the aggregate demand curve from AD₁ to AD₂, is: