Exam 15: Aggregate Demand and Aggregate Supply

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

If government spending decreases,which of the following would occur?

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

-Refer to Figure 15-8.Suppose that the economy is at the full-employment level of output of $6 trillion when a demand shock increases real GDP to $6.5 trillion.In the long run,we would expect the

-Refer to Figure 15-15.Suppose the economy is producing Y₁ and a supply shock moves the economy from AS₁ to AS₂.In the long run,we would expect

In the aggregate demand-aggregate supply model,an increase in the price level will

The average percentage markup in the economy is

-Refer to Figure 15-7.If the economy is currently at a price level of 120 and real GDP is $6.5 trillion,an increase in government purchases will,in the short run,

If government spending increases,which of the following would be most likely in the short and in the long run? (Both comparisons are with regard to the original price level/output combination. )

If it costs $8 to produce a certain product and the product sells for $9,then

In the short run,an increase in real GDP will

-Refer to Figure 15-12.The vertical line most likely represents the

-Refer to Figure 15-2.If the economy is initially at equilibrium at $7 trillion,what is the least likely cause of the shift of the aggregate expenditure line from AE₁ to AE₂,and the shift of the aggregate demand curve from AD₁ to AD₂?

A demand shock that increases real GDP above its full-employment level will,in the long run,

A spending shock

-Refer to Figure 15-16 above.Short run macro equilibrium occurs at a real GDP of

In the long run,changes in equilibrium GDP are most likely to be caused by

Which of the following would lead to a rightward shift of the money demand curve?

The aggregate supply curve

Due to the multiplier effect,a decrease in investment spending