Exam 15: Aggregate Demand and Aggregate Supply Analysis

The invention of the integrated circuit by Jack Kilby of Texas Instruments gave rise to the information age.What did this technological change do the short-run supply curve?

The ________ shows the relationship between the price level and quantity of real GDP demanded.

Which of the following could explain why there is an increase in potential GDP but the equilibrium level of GDP does not rise?

Figure 15-2 -Refer to Figure 15-2.Ceteris paribus,an increase in workers and firms adjusting to having previously underestimated the price level would be represented by a movement from

An increase in investment causes the price level to ________ in the short run and ________ in the long run.

Spending on the war in Afghanistan is essentially categorized as government purchases.How do increases in spending on the war in Afghanistan affect the aggregate demand curve?

If the U.S.dollar decreases in value relative to other currencies,how does this affect the aggregate demand curve?

Deflation will

According to Marx,which of the following factors of production did not contribute anything of value to production?

Which of the following models focuses on how productivity shocks explain fluctuations in real GDP?

One factor which brought on the recession of 2007-2009 was the financial crisis in 2008.

Explain how the economy moves back to full employment from recession.Be sure to detail what happens to short-run aggregate supply,unemployment,equilibrium GDP and the price level.

A decrease in the price level will

Figure 15-1 -Refer to Figure 15-1.Ceteris paribus,an increase in the price level would be represented by a movement from

An increase in the price level causes a movement down the aggregate demand curve.

If the short-run aggregate supply increases by less than the long-run aggregate supply,then,at the short-run equilibrium

Which of the following is considered a negative supply shock?

Suppose the economy is at full employment and firms become more optimistic about the future profitability of new investment.Which of the following will happen in the short run?

A decrease in investment causes the price level to ________ in the short run and ________ in the long run.

Figure 15-2 -Refer to Figure 15-2.Ceteris paribus,a decrease in the capital stock would be represented by a movement from