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

Use the figure below to answer the following question(s). Figure 10-7 -Given the aggregate demand and aggregate supply curves for the economy depicted in Figure 10-7, the economy's output and price level are

When the output of an economy exceeds the economy's full-employment capacity,

When the economy is operating at an output rate below its full-employment level, the

Suppose the economy is initially in long-run equilibrium and aggregate demand rises. In the long run prices

Which of the following shifts both short-run and long-run aggregate supply to the left?

The stability of consumption over the business cycle and the ability of changes in the real interest rate to redirect aggregate demand indicate that

If an improvement in the quality of education in the United States increases the productivity of labor, this will

Since the end of World War II, the U.S. has almost always had rising prices and an upward trend in real GDP. To explain this

Use the figure below to answer the following question(s). Figure 10-9 -Currently, the economy depicted in Figure 10-9 is in

Figure 10-18 -Beginning from long-run equilibrium at point E₁ in Figure 10-18, the aggregate demand curve shifts to AD₂. The real GDP and price level (CPI) in short-run equilibrium will be

An increase in the consumer sentiment index indicates that consumers are

Which of the following adjustments will most likely occur when output exceeds the economy's long-run capacity?

Which of the following would cause prices to fall and output to rise in the short run?

What impact did the soaring oil prices of 2007 and the first half of 2008 have on the economy?

In the aggregate demand/aggregate supply model, when the output of an economy is less than its long-run potential, the economy will experience

During recessions, interest rates tend to fall because

Over the last 60 years, the average annual growth of real GDP in the United States has been approximately

Which of the following will decrease the short-run aggregate supply of the United States?

Which of the following would cause prices to rise and real GDP to fall in the short run?

For an oil-importing country such as the United States, the immediate effect of a supply shock caused by an increase in the price of imported oil would tend to be