Exam 22: Aggregate Demand and Supply Analysis

An autonomous monetary policy easing reduces real interest rates and raises aggregate output ________ and the inflation rate rises ________.

A theory of aggregate economic fluctuations called real business cycle theory holds that

The aggregate demand curve is the total quantity of an economy's

Everything else held constant,an increase in government spending ________ aggregate ________.

The long-run aggregate supply curve is

Suppose the U.S. economy is producing at the natural rate of output. An appreciation of the U.S. dollar will cause ________ in real GDP in the short run and ________ in inflation in the long run,everything else held constant. (Assume the appreciation causes no effects in the supply side of the economy. )

A permanent negative supply shock leads to ________ real interest rates ________.

Everything else held constant,aggregate demand increases when

Which of the following increases aggregate supply in the short-run,everything else held constant?

Suppose the economy is producing at the natural rate of output. An increase in consumer and business confidence will cause ________ in real GDP in the short run and ________ in inflation in the short run,everything else held constant.

According to aggregate demand and supply analysis,the rising oil prices coupled with the global financial crisis in 2007-2008 caused the unemployment rate to ________ and the level of real aggregate output to ________.

In the long-run equilibrium

According to aggregate demand and supply analysis,the negative demand shock of 2000-2004 had the effect of

Suppose the economy is producing at the natural rate of output. An open market purchase of bonds by the Fed will cause ________ in real GDP in the long run and ________ in inflation in the long run,everything else held constant.

The fact that an economy always returns to the natural rate level of output is known as

Which of the followings does NOT shift the short-run aggregate supply curve?

By looking at aggregate demand via its component parts,we can conclude that the aggregate demand curve is downward sloping because

Suppose the economy is producing at the natural rate of output. Assuming a fixed natural rate of output and everything else held constant,the development of a new,more productive technology will cause ________ in the unemployment rate in the long run and ________ in inflation in the short run.

Which of the followings is NOT true about the word "autonomous" that economists use?

The more willing monetary policymakers are to raise interest rates when faced with inflation,the ________ the AD curve is,and the ________ responsive equilibrium output is to the inflation rate.