Exam 22: Aggregate Demand and Supply Analysis

Positive spending shocks lead to ________ inflation ________.

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.

A temporary negative supply shock ________ real interest rates and ________ output in the short run,thereby its effect on stock prices is ________.

Everything else held constant,an increase in the cost of production ________ aggregate ________.

Everything else held constant,when financial frictions increase,the real cost of borrowing ________ so that planned investment spending ________ at any given inflation rate.

The long-run aggregate supply curve is a vertical line passing through

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

Positive spending shocks lead to ________ output ________.

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

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

Everything else held constant,aggregate demand increases when

Because shifts in aggregate demand are not viewed as being particularly important to aggregate output fluctuations,they do not see much need for activist policy to eliminate high unemployment."They" refers to proponents of

According to aggregate demand and supply analysis,the favorable supply shock of 1995-1999 had the effect of

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

In the long run,following a combination of a negative demand shock and a temporary negative supply shock,

Everything else held constant,a balanced budget increase in government spending (that is,an increase in government spending that is matched by an identical increase in net taxes)will

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 ________.

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

A permanent negative supply shock causes stock prices to ________ than they would if the supply shock were temporary.

As of 2009,China's economy had recovered from the global recession that began in 2008.Use aggregate demand and aggregate supply analysis to explain why,and to explain the likely consequences for China of an increase in the growth rate of the global economy.