Exam 11: Aggregate Supply and Aggregate Demand

The aggregate supply curve shows the relationship between

An increase in government expenditure on goods and services ________ aggregate demand,shifting the aggregate demand curve ________ and potentially bringing the ________ phase of the business cycle.

A fall in the real wage rate ________ firms' profits and leads to ________ in the quantity supplied.

-If the costs of production increase,there is

The government increases the level of government expenditure.If there is no change in the aggregate supply curve,then aggregate demand will ________,real GDP will ________,and the price level will ________.

The aggregate demand curve illustrates the relationship between

Which of the following does NOT shift the aggregate demand curve?

A fall in the money wage rate ________ aggregate supply and ________.

If the economy is at macroeconomic equilibrium,then real GDP

If the price level increases,there is ________ the AD curve and the quantity of real GDP demanded ________.

An increase in the price level leads to

Last year the price level increased from 118 to 122.The increase in the price level leads to a decrease in

Which of the following can start an inflation?

The real wage rate definitely falls if the money wage rate ________ and the price level ________.

When cost-push inflation starts,real GDP ________ and the price level ________.

If there is an increase in expected future income,then

In a demand-pull inflation,money wage rates rise because

According to the AS-AD model,

Which of the following shifts the aggregate supply curve rightward? i.The money wage rate rises. ii.Potential GDP increases. iii.Government expenditure on goods and services increases.

A combination of recession and inflation is called