Exam 13: Aggregate Demand and Aggregate Supply Analysis

Figure 24-1 -Refer to Figure 24-1.Ceteris paribus,an increase in households' expectations of their future income would be represented by a movement from

Figure 24-2 -Refer to Figure 24-2.Ceteris paribus,an increase in workers and firms adjusting to having previously overestimated the price level would be represented by a movement from

Suppose a developing country receives more machinery and capital equipment as foreign entrepreneurs increase the amount of investment in the economy.As a result,

When the price level in the United States falls relative to the price level of other countries,________ will fall,________ will rise,and ________ will rise.

The long-run aggregate supply curve will shift to the right if the economy

In the dynamic aggregated demand and aggregate supply model,if AD shifts faster than AS

In the United States,because shipping plays such an important role in the economy,declines in cargo volumes reflect

Higher personal income taxes

The real business cycle model focuses on how

Figure 24-2 -Refer to Figure 24-2.Ceteris paribus,an increase in the price level would be represented by a movement from

Which of the following models advocate that the quantity of money should be increased at a constant rate?

The international trade effect states that

When the price level rises from 110 to 115,the aggregate level of GDP supplied rises from $80 billion to $120 billion.This ________ relationship represents the ________ relationship between the quantity of real GDP firms are willing to supply and the price level.

Figure 24-2 -Refer to Figure 24-2.Ceteris paribus,an increase in the expected price of an important natural resource would be represented by a movement from

Which of the following could explain why there is an increase in potential GDP but the equilibrium level of GDP does not rise?

Figure 24-4 -Refer to Figure 24-4.Given the economy is at point A in year 1,what will happen to the unemployment rate in year 2?

Stagflation usually results from

The invention of the cotton gin ushered in the Industrial Revolution and began a long period of technological innovation.What did this technological change do the short-run supply curve?

Suppose the U.S.GDP growth rate is faster relative to other countries' GDP growth rates.This will

Using aggregate demand and aggregate supply,explain what happens in the short run if the Federal Reserve lowers interest rates in the economy? Be sure to detail what happens to aggregate demand,the price level,the level of GDP,and unemployment.Assume that the economy is at full employment before the interest rate decrease.