Exam 12: Aggregate Demand and Aggregate Supply

In the long run,the output of an economy:

The contraction phase of a business cycle is best described as the time:

An increase in expected future prices causes:

If inflation turns out to be higher than expected,this will:

Suppose a prolonged war in a country destroys 30% of the capital stock.In the long run,the price level will ________ as ________.

An economy has experienced a rightward shift of its long-run aggregate supply curve and is now producing on that new long-run aggregate supply curve.It is reasonable to expect that:

Duration of a business cycle refers to:

During the Great Depression,aggregate demand in the U.S.economy decreased.As a result,the price level ________ and real gross domestic product (GDP)________.

Refer to the following figure to answer the questions that follow. -Based on the figure,if the economy is at point F,then in the long run,we can expect:

During the Great Recession,________ caused long-run aggregate supply to decrease.

The business cycle measures:

Refer to the following figure to answer the questions that follow. -Based on the figure,starting at point A,if there is an increase in government spending,then in the short run we would move to point ________ and in the long run to point ________.

When foreign income rises,U.S.aggregate:

The four major spending categories of GDP are:

The model used to study business cycles is the ________ model.

The Great Recession was different from other recessions since World War II in that:

Refer to the following figure to answer the questions that follow. -Based on the figure,an increase in ________ could cause the economy to move from point A to point D.

The Great Recession lasted for ________ months.

The big difference between the Great Recession and the recession of 1982 was:

Referring to the length of time from one business cycle peak to the next,the term used to describe this phenomenon is: