Exam 22: Aggregate Demand and Supply Analysis

Everything else held constant,if workers expect an increase in inflation,________ aggregate supply ________.

Everything else held constant,when output is ________ the natural rate level,wages will begin to ________,decreasing short-run aggregate supply.

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 long run and ________ in inflation in the long run,everything else held constant.

The long-run rate of unemployment to which an economy always gravitates is the

A central bank that does NOT follow the Taylor principle will fail to raise nominal interest rates by more than the increase in expected inflation. Therefore,higher inflation will lead to a ________ in real interest rates,resulting in ________-sloping monetary policy curves.

Everything else held constant,an increase in net exports ________ aggregate ________.

Everything else held constant,when actual output exceeds the natural rate of output ________ aggregate supply ________.

The aggregate supply curve shows the relationship between

One way to derive aggregate demand is by looking at its four component parts,which are

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

The Phillips curve indicates that when the labor market is ________,production costs will ________ and aggregate supply decreases.

Everything else held constant,a decrease in the cost of production ________ aggregate ________.

Everything else held constant,a decrease in government spending ________ aggregate ________.

The total quantity of an economy's final goods and services demanded at different inflation rates is

The price of a barrel of oil doubled between 2007 and the middle of 2008. To make matters worse,a financial crisis hit the U.S. economy starting in August of 2007. Which of the following is TRUE of the Chinese experience?

Everything else held constant,an increase in net taxes ________ aggregate ________.

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 and ________ in the inflation in the long run.

The long-run aggregate supply curve shifts to the right when there is

An autonomous monetary policy easing temporarily ________ real interest rates and ________ aggregate output in the short run,but in the long run real interest rates and aggregate output return to the equilibrium levels.

Everything else held constant,a decrease in planned investment expenditure ________ aggregate ________.