Exam 5: Introduction to Macroeconomics.

Which of the following is most likely to happen if the aggregate demand curve for an economy (which was initially in equilibrium) shifts to the left, aggregate supply remaining unchanged?

A period of sustained decline in output in an economy is known as a(n) _____

The market value of all final goods and services produced in a nation during a particular period is called the _____

According to Keynes, if private sector demand is insufficient to maintain full employment, the government should _____

In the history of the U.S. economy, which economic era saw both high unemployment and high inflation at the same time?

Exhibit 5.2 ​ -Refer to Exhibit 5.2, which shows the aggregate demand and supply curves for the United States. Between period 1 and period 2, nominal GDP changed from $40,000 to:

On a graph showing the aggregate demand and aggregate supply curves, stagflation can be represented by a(n) _____

The aggregate supply curve represents _____

The Keynesian approach to government economic policy _____

Exhibit 5.2 ​ -Refer to Exhibit 5.2 which shows the aggregate demand and supply curves for the United States. As the aggregate demand curve shifts from AD to AD', the equilibrium price level in period 1 _____

The word stagflation describes a situation in which _____

Which of the following statements is correct about the U.S. economy?

A period of sustained growth in output in an economy is referred to as a(n) _____

As the price level increases, the amount of goods and services that consumers, businesses, and governments desire to purchase will change. This is depicted by _____

Exhibit 5.1 -Refer to Exhibit 5.1, which shows the aggregate demand and supply curves for the United States. From the beginning of period 1 to the end of period 2, _____

Which of the following occurred in the era before and during the Great Depression?

In terms of the aggregate demand and aggregate supply framework, the Great Depression can be viewed as a _____

The aggregate demand curve slopes downward because households feel poorer after a decrease in the price level.

Identify the correct statement.

Which of the following would be studied by a macroeconomist?