Exam 15: Aggregate Demand and Aggregate Supply

The phenomenon of wages in many industries changing very little or not at all for a year or more after a change in output is referred by economists as

The aggregate supply curve would shift downward if

The aggregate demand curve

According to the aggregate supply-aggregate demand model,an expansionary fiscal policy will,in the long run,

Which of the following would lead to a positive supply shock?

The aggregate supply curve is found by summing up the supply curves for all the different products in the economy.

The 1990 U.S.recession was

A positive demand shock will

Which of the following will cause a movement along the aggregate demand curve?

If the Fed sells bonds in an open market operation,which of the following is most likely to occur?

Recovery from the 1990-91 recession occurred because wages fell and the aggregate supply curve shifted downward.

The aggregate supply curve describes the same relationship between price and quantity as a microeconomic supply curve.

Which of the following would shift the aggregate demand curve to the right?

The economy's long run aggregate supply curve

In the short run,the price level will rise whenever there is an economy-wide decrease in unit costs.

The aggregate demand curve tells us equilibrium real GDP at any price level.

If output is below the full-employment level of output,we should expect wages to increase over time.

-Refer to Figure 15-9.Suppose the economy is in equilibrium with real GDP of $7 trillion.A demand shock shifts the aggregate demand curve to AD₂,increasing real GDP to its full-employment level of $7.2 trillion.In the long run,following the shock,we would expect the

If the price level is increasing and output is falling,which of the following could be the reason?

The decline in output at the onset of the Great Depression was caused primarily by