Exam 14: The Aggregate Model of the Macro Economy

A depreciation of the U.S.dollar would shift the:

A decrease in taxes would shift the:

Decreases in autonomous spending cause rightward shifts of the aggregate demand and supply curves.

An increase in wealth would shift the:

The decrease in consumption and investment interest-related spending that occurs when the interest rate rises as government spending increases is called:

An appreciation of the U.S.dollar would shift the:

A decrease in efficiency would shift the long-run aggregate supply curve:

The long-run aggregate supply curve is influenced by the price level.

An increase in taxes would shift the:

The aggregate demand curve shows the alternative combinations of the price level and real income that result in simultaneous equilibrium in both the goods and money markets.

The curve that shows alternative combinations of the price level and real income that result in equilibrium in both the real goods and the money markets is called the:

Why did the Fed shift its policy target towards the federal funds rate.

Using the aggregate demand-aggregate supply diagram,graphically illustrate and explain the impact of an expansionary monetary policy on the price level and real income in the very short run.

The increase in income generated by the additional government expenditure decreases the demand for money.

Manufacturing,employment,monetary,and consumer expectations statistics are examples of lagging indicators.

Lower interest rates are generally charged on more risky investments and on securities that have longer maturities.

A decrease in the nominal money supply would shift the:

What are the reasons for a decrease in the NAIRU.

Economic variables that generally turn down before a recession begins and turn back up before the recovery starts are called:

Average weekly hours in manufacturing is an example of a: