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

Use the figure below to answer the following question(s). Figure 10-2 -At which point in Figure 10-2 is the economy experiencing an economic recession?

Use the figure below to answer the following question(s). Figure 10-17 -With the passage of time, which of the following will tend to direct this economy in Figure 10-17 toward its long-run sustainable rate of output?

Which of the following factors contributed to the 2008 economic recession in the United States?

If a market economy was in a recession, which of the following would help direct it back toward the full employment rate of output?

Which one of the following factors will most likely cause an increase in aggregate demand?

Suppose the economy is in long-run equilibrium. In a short span of time, there is a large influx of skilled immigrants, a major new discovery of oil, and a major new technological advance in electricity production. In the short run, we would expect

In the short run, equilibrium output in the goods and services market may be either above or below the full-employment level, but in the long run, it

Which of the following will lead to an increase in aggregate demand in the United States?

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

During the crisis of 2008 housing prices ________ and stock prices ________. (Fill in the blank)

The long-run equilibrium price level is the price level the economy is expected to reach when the

Figure 10-13 -In Figure 10-13, which of the following would most likely cause the movement from point e₂ to point E₂?

Use the figure below to answer the following question(s). Figure 10-10 -Figure 10-10 indicates the output of the economy, y₁, is

Use the figure below to answer the following question(s). Figure 10-7 -The economy depicted in Figure 10-8 is in

If an economy is in equilibrium at a given price level and a given output level, the aggregate demand/aggregate supply (AD/AS) model indicates that an unanticipated decrease in aggregate demand will cause

Which of the following will most likely be an unanticipated economic change?

An increase in the exchange rate value of the U.S. dollar, relative to the Japanese yen, will cause U.S. imports from Japan to

Figure 10-18 -Based on Figure 10-18, when the aggregate demand curve is in the position AD₁, the economy's position of long-run equilibrium corresponds to point

Which of the following contributed to the crisis of 2008?

Which of the following will most likely occur as the result of an unanticipated increase in aggregate demand that pushes output beyond long-run capacity?