Exam 10: Bringing in the Supply Side: Unemployment and Inflation?

According to Baumol and Blinder,does the U.S.economy have a self-correcting mechanism?

Table 10-1 -In Table 10-1,if full employment occurs at $3,400 billion,then

The general shape of the aggregate supply curve is

Table 10-1 -In Table 10-1,if full employment occurs at $3,100 billion,then

According to an old saying,when too much money is chasing too few goods,we have a(n)

If aggregate quantity supplied exceeds aggregate quantity demanded,we can expect an unplanned

The example of an inflationary gap in 2006-2007 suggested that the economy adjusts

Figure 10-3 -In Figure 10-3,we would expect the aggregate supply curve in graph (b)to eventually

Stabilization policy may be necessary to slow down the speed of the adjustment process.

The United States economy in the mid-2000s did not experience stagflation because

The slope of the aggregate supply curve is

As a result of the war in Afghanistan,the population of Afghanistan as well as their capital stock was reduced.This can be illustrated by aggregate supply curve

When economists refer to the economy's self-correcting mechanism,they are referring to the fact that the

Figure 10-8 -Figure 10-8 illustrates a period of

The fact that severe fluctuations in inflation and unemployment are socially undesirable helps make the case for

Figure 10-3 -In Figure 10-3,both graphs (a)and (b)indicate that the economy is experiencing a(n)

One of the justifications of government stabilization policy is that it may

The only factor that can cause movement along the aggregate supply curve is the

Profit per unit can be expressed as price - cost per unit.

When money wages rise,the most significant effect on the aggregate supply curve is that it