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

During the past 50 years,the production possibilities of the United States have expanded,increasing both short-run and long-run aggregate supply.Other things constant,this would lead to

An unanticipated decline in the real interest rate in the loanable funds market will cause the

Use the figure below to answer the following question(s). Figure 10-6 -In the short-run equilibrium depicted in Figure 10-6,the economy's output is

Which of the following contributed to the sharp economic downturn during 2008?

What impact did the change in housing prices during 2002 to 2005 have within the framework of the AD/AS model?

What would be the effect of a decrease in the real interest rate and an increase in the expected inflation rate?

Suppose this year's inflation rate is 4 percent,which is greater than the 2 percent everyone expected.Which of the following is true?

Starting from long-run equilibrium at point A,which of the following points would occur immediately following an unanticipated decrease in stock prices?

Which of the following is most likely to result from an unanticipated increase in short-run aggregate supply due to favorable weather conditions in agricultural areas?

When output is less than the economy's long-run capacity,which of the following is most likely to occur?

Figure 10-3 -Starting from long-run equilibrium at point A in Figure 10-3,at which of the following points would short-run equilibrium occur immediately following an unanticipated increase in stock prices?

Other things constant,a reduction in the real interest rate will

Use the figure below to answer the following question(s). Figure 10-10 -Given the aggregate demand and aggregate supply conditions depicted in Figure 10-10,which of the following will tend to occur?

Suppose we observe an economy experiencing an economic expansion and high inflation.This means the expansion is attributed to

If a market economy has a self-correcting mechanism,when output is lower than potential or full-employment output,

Which of the following will most likely result from an unanticipated decrease in aggregate supply due to unfavorable weather conditions in agricultural areas?

Which of the following would reduce the ability of the self-correcting mechanism to direct an economy out of a recession quickly?

If Asian economies suffer a serious economic slump,U.S.net exports will

If the U.S.price level increased relative to price levels in foreign countries,what would be the impact on domestic aggregate supply and aggregate demand curves?

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