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

Use the figure below to answer the following question(s). Figure 10-4 Starting from long-run equilibrium at point F in Figure 10-4, at which of the following points would short-run equilibrium occur following a decrease in resource prices?

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

If the general level of prices is higher 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?

Use the figure below to answer the following question(s). Figure 10-1 At which point in Figure 10-1 is the economy experiencing an economic boom?

In the aggregate demand/aggregate supply model, when the output of an economy is less than its long-run potential, the economy will experience

Use the figure below to answer the following question(s). Figure 10-7 Given the aggregate demand and aggregate supply curves for the economy depicted in Figure 10-7, the economy's output and price level are

An increase in the general level of prices in the goods and services market that is accompanied by a short-run expansion in output is most likely caused by

Under which of the following conditions will a change in government purchases have the greatest effect on the economy in the short run?

Use the figure below to answer the following question(s). Figure 10-2 At which point in Figure 10-2 is the economy experiencing an economic boom?

Explain how each of the following factors would influence aggregate demand in the United States. Be sure to explain which component of aggregate demand would be affected. a.a stock market crash b.an increase in the personal income tax rate c.a decrease in the real interest rate d.an increase in government purchases e.a decline in income in Canada

Over the last 60 years, the average annual growth of real GDP in the United States has been approximately

Which of the following will most likely occur in the short run if long-run equilibrium is disturbed by an unanticipated decrease in aggregate demand?

Use the figure below to answer the following question(s). Figure 10-9 The output of the economy depicted in Figure 10-9 is

Use the figure below to answer the following question(s). Figure 10-9 If the economy were operating at point a in Figure 10-9, resource prices would tend to

A supply shock is a surprise occurrence that

From mid-year 2006 to year-end 2008, housing prices

When an economy experiences long-run economic growth, a larger output can be achieved

A recession abroad would

If a reduction in stock prices reduces the real wealth of Americans, the

Which of the following shifts both short-run and long-run aggregate supply to the left?