Exam 9: Real GDP and the Price Level in the Long Run

-In the above figure, a movement from point B to point A can be explained by

Suppose the Federal Reserve implements expansionary monetary policy where the money supply increases. Which of the following will tend to occur in the long run as a result of this monetary policy action?

Another term for the real-balance effect is

The open economy effect and interest rate effect are two of the reasons why

-In the above figure, a movement from point A to point B can be explained by

Over the last twenty years, real GDP in the U.S. economy has increased and there has been inflation. This indicates that

What causes the aggregate demand curve to shift?

-Refer to the above figure. If the price level is 80

The various quantities of all final commodities demanded at various price levels, ceteris paribus, is the

The level of real GDP identified by the long-run aggregate supply curve is

What is the interest rate effect of an increase in the price level?

What happens when the price level falls?

Which of the following will occur when an economy's price level increases?

Which of the following would cause aggregate demand to decrease?

When the price level falls

The aggregate demand curve shows

One reason that the aggregate demand curve slopes downward is because

The long-run aggregate supply curve is vertical because

A shift away from expenditures on domestic goods and a shift toward expenditures on foreign goods when the domestic price level increases is known as

Higher interest rates