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

Figure 10-12 In Figure 10-12, which of the following would most likely cause the movement from point E₁ to point e₂ for the United States?

If the general level of prices is lower than business decision makers anticipated when they entered into long-term contracts for raw materials and other resources, which of the following is most likely to occur?

Which of the following will most likely accompany an unanticipated increase in short-run aggregate supply?

If the U.S. price level increased relative to price levels in foreign countries, what would be the impact on domestic aggregate supply and aggregate demand curves?

Figure 10-18 Beginning from a point of short-run equilibrium at point E₂ in Figure 10-18, the economy's movement to a new position of long-run equilibrium from that point would best be described as

In the aggregate demand/aggregate supply model, an increase in a country's sustainable potential output is represented by

If an improvement in the quality of education in the United States increases the productivity of labor, this will

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

Within the AD/AS model, which one of the following adjustments will cause the economy to return to its long-run capacity when output is temporarily greater than the economy's long-run potential?

Which of the following will cause an increase in aggregate demand within the AS/AD model?

Which of the following would cause prices and real GDP to rise in the short run?

Suppose the economy is in long-run equilibrium. In a short span of time, there is a pessimistic revision of expectations about future business conditions and an unexpected rise in the value of the dollar. In the short run, we would expect

Which of the following contributed to the crisis of 2008?

Use the figure below to answer the following question(s). Figure 10-11 In Figure 10-11, which of the following would most likely cause the movement from point E₁ to point E₂?

Use the figure below to answer the following question(s). Figure 10-14 At which of the following points in Figure 10-14 would short-run equilibrium occur immediately following an adverse supply-side shock?

Which of the following would reduce the ability of the self-correcting mechanism to direct an economy out of a recession quickly?

Which of the following will most likely increase aggregate supply in the long run?

If there is an unanticipated decrease in aggregate demand, which of the following is most likely to occur?

If the general level of prices is lower than business decision makers anticipated when they entered into long-term contracts for raw materials and other resources, which of the following is most likely to occur?

If the economy is simultaneously in long-run and short-run equilibrium, which of the following is true?