Exam 14: The Aggregate Model of the Macro Economy

Using the aggregate demand-aggregate supply diagram,graphically illustrate and explain the impact of an appreciation of the U.S.dollar on the price level and real income in the short.

Industrial production is an example of a:

A decrease in foreign real income would shift the:

In the long-run,an increase in the budget deficit and an expansionary monetary policy would:

The OPEC oil shocks in 1973-1974 are an example of:

Depreciation of the U.S.dollar will shift the AD curve leftward.

An income tax system where higher tax rates are applied to increased amounts of income is called a:

An increase in production costs will shift the:

An increase in the nominal money supply would shift the:

An open market purchase of government securities by the Fed would shift the aggregate demand curve leftward.

An increase in resources available would decrease potential GDP and the long-run aggregate supply curve.

The horizontal portion of the short-run aggregate supply curve reflects the Keynesian assumption of "sticky" prices.

At a given price level,a decrease in consumer credit will shift the aggregate demand curve:

Contractionary fiscal policy should be used if:

Expansionary monetary policy should be used if:

The combination of rising inflation and higher unemployment is called:

The full-employment level of output is called:

Industrial production is an example of a coincident indicator.

In the short-run along the horizontal portion of the aggregate supply curve,an increase in the budget deficit and an expansionary monetary policy would:

A decrease in the costs of resources or inputs of production would shift the: