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

Which of the following can cause supply-side inflation?

A rightward shift of the long-run aggregate supply curve is caused by

What is measured on the vertical axis when we draw a graph of long-run aggregate supply?

The long-run aggregate supply curve is

When the relative prices of U.S.-manufactured goods go up, the result is

Which of the following statements is correct? I. A drop in the foreign exchange value of the dollar would decrease aggregate demand II. A decrease in the amount of money in circulation would increase aggregate demand

Other things being equal, along an aggregate demand curve, a higher price level is associated with

Suppose that along the aggregate demand curve, real GDP equals $14.2 trillion when the GDP deflator is 90. If the GDP deflator were 95, real GDP along the aggregate demand curve would equal

A price level increase tends to reduce net exports, thereby reducing the amount of real goods and services purchased in the United States. Economists refer to this phenomenon as

Real GDP will increase over the long run if

Economic growth can be depicted as

A higher domestic price level should

Whenever the general level of prices rises because of continual increases in aggregate demand, we say that the economy is experiencing

The curve that displays total planned real spending on goods and services at each price level by households, businesses, the government, and foreign residents is called

If other factors are held constant, an increase in the price level

All of the following would shift the LRAS curve to the right EXCEPT

The real output of the economy under conditions of full employment

The aggregate demand curve has

-Refer to the above figures. Which panel(s)represent the effect of a decrease in labor productivity?

The aggregate demand curve plots