Question 1

If full-employment GDP is equal to $4.2 trillion,what does the long-run aggregate supply curve look like?

Accepted Answer

A)  It is a horizontal line at $4.2 trillion of GDP. 
B)  It is a vertical line at a level of GDP below $4.2 trillion. 
C)  It is a vertical line at $4.2 trillion of GDP. 
D)  It is a vertical line at a level of GDP above $4.2 trillion. 
A)  It is a horizontal line at $4.2 trillion of GDP. 
B)  It is a vertical line at a level of GDP below $4.2 trillion. 
C)  It is a vertical line at $4.2 trillion of GDP. 
D)  It is a vertical line at a level of GDP above $4.2 trillion.

Question 2

An increase in the price level shifts the aggregate demand curve to the left.

Accepted Answer

A) True 
 B)False

Question 3

At the beginning of the recession of 2007-2009,real GDP in the United States was ________ potential GDP,and in June 2009,real GDP was ________ potential GDP.

Accepted Answer

A)  below; above 
B)  below; below 
C)  above; below 
D)  above; above 
A)  below; above 
B)  below; below 
C)  above; below 
D)  above; above

Question 4

If the short-run aggregate supply increases by less than the long-run aggregate supply,then,at the short-run equilibrium,

Accepted Answer

A)  GDP will be below potential GDP. 
B)  aggregate demand will increase. 
C)  GDP will be above potential GDP. 
D)  GDP will be equal to potential GDP. 
A)  GDP will be below potential GDP. 
B)  aggregate demand will increase. 
C)  GDP will be above potential GDP. 
D)  GDP will be equal to potential GDP.

Question 5

The long-run aggregate supply curve is vertical.

Accepted Answer

A) True 
 B)False

If full-employment GDP is equal to $4.2 trillion,what does the long-run aggregate supply curve look like?

An increase in the price level shifts the aggregate demand curve to the left.

At the beginning of the recession of 2007-2009,real GDP in the United States was potential GDP,and in June 2009,real GDP was potential GDP.

If the short-run aggregate supply increases by less than the long-run aggregate supply,then,at the short-run equilibrium,

The long-run aggregate supply curve is vertical.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 13: Aggregate Demand and Aggregate Supply Analysis

If full-employment GDP is equal to $4.2 trillion,what does the long-run aggregate supply curve look like?

An increase in the price level shifts the aggregate demand curve to the left.

At the beginning of the recession of 2007-2009,real GDP in the United States was ________ potential GDP,and in June 2009,real GDP was ________ potential GDP.

If the short-run aggregate supply increases by less than the long-run aggregate supply,then,at the short-run equilibrium,

The long-run aggregate supply curve is vertical.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

At the beginning of the recession of 2007-2009,real GDP in the United States was potential GDP,and in June 2009,real GDP was potential GDP.