Exam 13: The Aggregate Demandaggregate Supply Model

Unemployment rises and real gross domestic product (GDP) growth slows during the:

An increase in the value of the dollar will __________ exports and __________ imports.

Which of the following would cause an increase in long-run aggregate supply?

Refer to the following figure to answer the next two questions. -A decrease in aggregate demand is harmful in the short run because __________,but beneficial in the long run because __________.

The interest rate effect results from people:

A supply shock causes a shift in:

Which of the following is true about the price level and aggregate supply?

Explain the difference between the short-run and long-run aggregate supply curves.

Refer to the following figure to answer the next five questions. -Based on the figure,an increase in _________ could cause the economy to move from point A to point D.

Suppose firms increase investment spending to replace worn-out equipment.In the short run,aggregate demand will __________ and output will __________.

The long-run aggregate supply curve is:

Suppose a country's population is growing due to immigration.In the long run,output will _________ due to _________.

__________ would cause a rightward shift of the aggregate demand curve.

Suppose a change in health care laws increases the cost of hiring an employee.We can expect output in the short run to __________ and output in the long run to __________.

The price index used to illustrate the aggregate demand curve is the:

How many recessions have there been in the United States since 1982?

An increase in the general price level will lead to:

Explain and illustrate how the short-run and long-run equilibrium levels of output and the price level are affected by legislation that increases the employer's cost of providing health care to workers.

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

The slope of the short-run aggregate supply curve can be explained by: