Exam 33: Aggregate Demand and Aggregate Supply

All explanations for the upward slope of the short-run aggregate supply curve suppose that the quantity of output supplied increases when the actual price level exceeds the price level that was expected.

Other things the same,if the price level is lower than expected,then some firms believe that the relative price of what they produce has

During World War II government expenditures increased almost five-fold and output almost doubled.

Aggregate demand shifts left when the government

Which of the following shifts short-run aggregate supply left?

Which of the following shifts short-run,but not long-run aggregate supply right?

The explanations for the slopes of the aggregate demand and short-run aggregate supply curves are the same as the explanations for the slopes of demand and supply curves for specific goods and services.

Since the end of World War II,the U.S.has almost always had rising prices and an upward trend in real GDP.To explain this

The economic boom of the early 1940s resulted mostly from

Suppose a shift in aggregate demand creates an economic contraction.If policymakers can respond with sufficient speed and precision,they can offset the initial shift by shifting

Aggregate demand would shift right if either

Which part of real GDP fluctuates most over the course of the business cycle?

An increase in the interest rate causes investment to

According to the misperceptions theory of the short-run aggregate supply curve,if a firm thought that inflation was going to be 4 percent and actual inflation was 2 percent,then the firm would believe that the relative price of what they produce had

Explain how an increase in the price level changes interest rates.How does this change in interest rates lead to changes in investment and net exports?

Which of the following shifts aggregate demand to the left?

The aggregate demand curve

Below are pairs of GDP growth rates and unemployment rates.Economists would be shocked to see most of these pairs.Which pair of GDP growth rates and unemployment rates is realistic?

Which of the following,other things the same,would make the price level decrease and real GDP increase?

If there are sticky wages,and the price level is greater than what was expected,then