Exam 11: Aggregate Supply and Aggregate Demand

When potential GDP increases,the potential GDP line ________,and the aggregate supply curve ________.

When investment increases,the ________ in aggregate demand is ________ the change in investment.

Initially,demand-pull inflation will

-The table above gives data for the nation of Pearl,a small island in the South Pacific.If aggregate demand increases so that the quantity of real GDP demanded is $6 billion more at each price level,the new equilibrium real GDP is

A decrease in investment leads to ________ in aggregate demand and ________ in real GDP.

The line showing potential GDP is a vertical straight line because

A change in any component of aggregate demand creates a larger change in overall aggregate demand.This is the ________ effect,and it means,for example,that a(n)________ in consumption will cause an even larger ________ in AD.

Which of the following produces a movement along the aggregate demand curve and does not shift the aggregate demand curve?

- According to the figure above,which point or points correspond to full employment?

When the Australian price level rises relative to other nations' price levels,then

Which of the following factors could start a demand-pull inflation?

If the AD curve shifts rightward while the AS curve and potential GDP don't change,then

If demand-pull inflation occurs when the economy is already at potential GDP then,following the initial increase in aggregate demand,the

An increase in the price of oil ________ aggregate supply,shifting the aggregate supply curve ________ and potentially bringing the ________ phase of the business cycle.

Compared to the initial equilibrium,an initial increase in aggregate demand that is NOT followed by an increase in the quantity of money results in new long-run equilibrium with

When the price level increases there is ________ movement along the aggregate demand curve because the buying power of money ________.