Exam 10: Dynamic Change, economic Fluctuations, and the Ad-As Model

A large grain crop resulting from favorable weather conditions would shift which of the following curves?

If European economies experience strong economic growth,U.S.net exports will

Use the figure below to answer the following question(s). Figure 10-5 -Given the aggregate demand and aggregate supply conditions depicted in Figure 10-5,which of the following is the most likely occurrence?

Which of the following will most likely increase aggregate demand?

When economic growth (a gradual shift of LRAS to the right)expands the production possibilities of an economy,

When an economy is in a recession,

When the economy is operating at an output rate below its full-employment level,the

Which of the following will most likely accompany an unanticipated reduction in aggregate demand?

Which of the following will most likely accompany an unanticipated increase in aggregate demand?

The stability of consumption over the business cycle and the ability of changes in the real interest rate to redirect aggregate demand indicate that

Figure 10-18 -As shown in Figure 10-18,the economy's point of short-run equilibrium,given by the shift of the aggregate demand curve from AD₁ to AD₂,is

The economic boom between 2002 and 2006 was primarily a result of

Which of the following would be most likely to cause a reduction in current aggregate demand in the United States?

A recession abroad would

When the output of an economy exceeds the economy's full-employment capacity,

When an economy is experiencing an economic boom and operating beyond its long-run capacity,

If an improvement in the quality of education in the United States increases the productivity of labor,this will

During an economic expansion,housing and stock prices generally

If the consumer sentiment index turns down sharply over a period of several months,which of the following is most likely to occur in the near future?

The short-run effect of a sudden increase in stock prices will be