Exam 10: Dynamic Change, Economic Fluctuations, and the Ad-As Model

Use the figure below to answer the following question(s). Figure 10-15 -The economy's short-run (SRAS ) and long-run (LRAS) aggregate supply curves are shown in Figure 10-15, along with three alternative aggregate demand curves and the accompanying equilibrium points. At which point will resource prices naturally tend to increase?

Which of the following will most likely occur in the United States as the result of an unexpected rapid growth in real income in Canada and Mexico?

If a currency appreciates, a country's net exports

When an economy is in a recession,

Which of the following will cause an increase in aggregate demand within the AS/AD model?

Which of the following reduced aggregate demand and thereby contributed to the crisis of 2008?

During the past 50 years, the production possibilities of the United States have expanded, increasing both short-run and long-run aggregate supply. Other things constant, this would lead to

If there is an unanticipated decrease in aggregate demand, which of the following is most likely to occur?

Which of the following is most likely to accompany a fully anticipated reduction in short-run aggregate supply?

How will an increase in the world price of crude oil influence the economy of an oil-importing country such as the United States?

The situation in which actual output exceeds potential output

When the economy is operating at an output rate less than full-employment capacity,

Use the figure below to answer the following question(s). Figure 10-7 -If the economy were operating at point a in Figure 10-8, the real rate of interest would tend to

Which of the following is most likely to result in a temporary spurt in the growth of real output that cannot be maintained in the long run?

Which of the following was a contributing factor to the instability of 2002 to 2008?

The short-run effects of a favorable supply shock will include

During the 1990s, a financial crisis spread throughout Asia causing those economies to drop into recessions. Other things constant, how would such a decrease in the income of foreign trading partners have influenced the price level and output of the United States?

Under which of the following conditions will a change in government purchases have the greatest effect on the economy in the short run?

Within the AD/AS model, how does an economy adjust to an output beyond its long-run capacity as a result of an unanticipated increase in aggregate demand?

Use the figure below to answer the following question(s). Figure 10-15 -The economy's short-run (SRAS ) and long-run (LRAS) aggregate supply curves are shown in Figure 10-15, along with three alternative aggregate demand curves and the accompanying equilibrium points. At which point will resource prices naturally tend to decrease?