Exam 19: Aggregate Supply and Aggregate Demand

An increase in potential GDP ________ aggregate supply and ________.

The AS curve shifts leftward if

An increase in investment ________ aggregate demand, the aggregate demand curve shifts ________ and the economy is in the ________ phase of the business cycle.

Aggregate demand ________ and shifts the AD curve ________ when ________.

Aggregate demand ________ and shifts the AD curve ________ when ________.

An increase in the money wage rate leads to

If real GDP is less than potential GDP, then the money wage rate ________, aggregate supply ________ so that the price level ________.

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

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

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

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

If real GDP is less than potential GDP, then the ________ and the price level ________.

Oil price hikes

A reason why an increase in the price level decreases the quantity of real GDP demanded is that

In the late 1920s, the U.S. economy experienced a decrease in investment, which perhaps triggered the Great Depression. The decrease in investment

At a price level of 100, John has savings equal to $20,000. If the price level increases to 130, the buying power of John's savings is approximately

Macroeconomic equilibrium occurs when

If the money wage rate does not change, a decrease in the price level will ________ the real wage rate and ________ firms' profit.

A fall in the price level brings a ________ in the real wage rate that ________ profits and can lead to ________.

If the AD curve shifts rightward, then