Exam 11: Aggregate Supply and Aggregate Demand

A tax increase

The government passes a law which doubles the wages of all workers.Aggregate supply will ________,real GDP will ________,and the price level will ________.

Along the aggregate supply curve,the quantity of real GDP supplied increases when the price level rises because

The quantity of real GDP supplied ________ when the price level increases because ________.

The slope of the aggregate supply curve shows that,all else the same,the

An increase in government expenditure on goods and services leads to

-In the figure above,the shift in the aggregate demand curve from AD₁ to AD₂ could be the result of

If people's expectations about future income improve so they think their future income will be higher than previously believed,then the AD curve

Stagflation is defined as a period when real GDP ________ and the price level ________.

An economy experiences a recessionary gap.As the economy adjusts to full employment,the money wage rate

In its macroeconomic equilibrium,the economy can be producing at i.below full employment. Ii)full employment. Iii)above full employment.

The table gives the aggregate demand and aggregate supply schedules for a nation. -Refer to the table above.If the price level is 90,then the price level will ________ because ________.

Which of the following changes aggregate supply and shifts the aggregate supply curve? i.Change in the price level ii.Change in potential GDP iii.Change in the money wage rate

-In the figure above,the economy is at an equilibrium with real GDP of $16 trillion and a price level of 110.At this point there is

A deep recession hits the world economy,and real GDP in the rest of the world decreases.In Australia,

-The table above gives data for the nation of Pearl,a small island in the South Pacific.When the economy is at full employment the price level is

When the domestic price level increases,exports decrease and imports increase.Other things the same,this change is illustrated by a

If the quantity of real GDP demanded is greater than the quantity of real GDP supplied,then

An increase in the quantity of money ________ aggregate demand and ________.

When cost-push inflation starts,real GDP ________ and the unemployment rate ________.