Exam 10: Dynamic Change, Economic Fluctuations, and the Ad--As Model

Which of the following shifts short-run, but not long-run aggregate supply to the right?

Which of the following will most likely accompany an unanticipated increase in aggregate demand?

Which of the following will most likely accompany an unanticipated reduction in aggregate demand?

Which of the following is most likely to result in a temporary spurt in the growth of real output that cannot be maintained in the long run?

When output is less than the economy's long-run capacity, which of the following is most likely to occur?

Suppose there was a sharp reduction in stock prices and a sharp increase in the world price of crude oil. Within the framework of the AD/AS model, how would these two changes influence the U.S. economy?

Figure 10-18 Beginning from long-run equilibrium at point E₁ in Figure 10-18, the aggregate demand curve shifts to AD₂. The real GDP and price level (CPI) in short-run equilibrium will be

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

If a country's currency appreciates, which of the following will most likely happen?

Which one of the following factors will most likely cause an increase in aggregate demand?

Which of the following adjustments will most likely occur when output exceeds the economy's long-run capacity?

The expected price level is important because

Within the framework of the AD/AS model, in the long run, output

When the output of an economy exceeds the economy's full-employment capacity,

An increase in the long-run aggregate supply curve indicates that

For an oil-importing country such as the United States, the immediate effect of a supply shock caused by an increase in the price of imported oil would tend to be

When an economy is experiencing an economic boom and operating beyond its long-run capacity,

Figure 10-3 Starting from long-run equilibrium at point A in Figure 10-3, at which of the following points would short-run equilibrium occur immediately following an unanticipated increase in stock prices?

Use the figure below to answer the following question(s). Figure 10-8 The economy depicted in Figure 10-8 is in

Within the AD/AS model, if an unanticipated reduction in aggregate demand results in less than the full-employment rate of output,