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

Figure 10-7 -Refer to Figure 10-7.Which of the diagrams in Figure 10-7 represents a period of economic growth and inflation?

In 1973,the U.S.experienced a decline in output and high inflation.

If the price level rises,what will happen to the level of real GDP supplied?

Figure 10-1 -What does inflation do to the value of the oversimplified multiplier?

To calculate a firm's per unit of output profit,it is necessary to subtract

College graduates looking for jobs were less fortunate in 2007 than graduates in 2009.

Part of the normal aftermath of a period of excessive aggregate demand is

Using the aggregate demand/aggregate supply model,explain the difference in the employment prospects of the graduates of 2007 and 2009.

As the U.S.labor force grows and the nation's capital stock is augmented by investment,the

What causes the aggregate supply curve to have an upward slope in the short run,but a vertical slope in the long run?

How is it possible for the economy to have an inflationary gap?

The slope of the aggregate supply curve decreases as total output increases.

Figure 10-7 -Which of the panels in Figure 10-7 shows an economic recession caused by primarily by a change aggregate demand?

Figure 10-8 -Figure 10-8 describes which of the following periods in the U.S.?

The existence of an inflationary gap should cause

A price level lower than equilibrium will cause quantity supplied to exceed quantity demanded.

Figure 10-1 -If the price level in Figure 10-1 were 120,

Like the supply curve for individual goods and services,the aggregate supply curve slopes upward and to the right.

From 2005 to 2006 the U.S.economy experienced significant inflation because the aggregate demand curve shifted outward more than the aggregate supply curve shifted outward.

When equilibrium GDP is below potential GDP,jobs are