Exam 12: Aggregate Demand and Aggregate Supply

The following list contains factors that are related to the aggregate demand curve. 1) Household expectations 2) Profit expectations 3) Degree of excess capacity 4) Personal income tax rates 5) Exchange rates 6) National income abroad 7) Government spending 8) Household wealth - Refer to the above information. A change in net export spending would most likely be caused by changes in:

- Refer to the above graph. At price level P₁:

The amount of real domestic output that will be purchased at each possible price level is best shown by the:

The table shows the aggregate demand and aggregate supply schedule for a hypothetical economy. Refer to the above table. Using the original data from the table, if the quantity of real domestic output demanded increased by $3000 and the quantity of real domestic output supplied increased by $1000 at each price level, the new equilibrium price level and quantity of real domestic output would be:

- Refer to the above diagram. When output increases from Q₁ and the price level decreases from P₁, this change will:

The following list contains items that are related to aggregate demand and/or aggregate supply. 1) Government Spending 2) Consumer Expectations 3) Degree of Excess capacity 4) Personal Income Tax Rates 5) Productivity 6) National Income Abroad 7) Business Taxes 8) Domestic Resource Availability 9) Price of Imported Products 10) Profit Expectations on Investments - Refer to the above list. Changes in which combination of factors best explain why the aggregate supply curve would shift?

If the multiplier is 4 and the desired increase in real GDP is $200 billion, the initial change in spending required to achieve that goal:

- Refer to the above graph. At price level P₂:

An increase in government spending will cause a(n):

A decrease in aggregate demand will have no effect on the real equilibrium GDP of the economy and will lower its price level in the long run.

When national income in other nations decreases, aggregate:

Refer to the above graph. Which factor will shift AD₁ to AD₂?

A rise in prices of imported resources will cause aggregate:

If the prices of imported resources decrease, then this event would most likely:

One reason why the aggregate supply curve might shift to the left is that:

Which event would most likely increase aggregate demand?

Below the full-employment level of output, per-unit production costs rise and firms must receive higher product prices for them to be profitable.

-Refer to the above graph. Which line shows the full-employment output for the economy?

The aggregate demand curve is the relationship between the:

A decrease in net exports will cause a(n):