Exam 13: The Aggregate Demandaggregate Supply Model

Suppose that you have the following information about the economy,where all figures are in millions of dollars: Full employment output = $2,000 Consumption = $1,200 Investment = $400 Government spending = $500 Net exports = −$200 Because short-run output is __________ full employment output,in the long run we would expect the price level to __________.

Increases in productivity will:

The value of one's accumulated assets is best defined as:

Supply shocks cause short-run aggregate supply to:

A rise in the price level that leads to a change in the interest rate,and therefore to a change in the quantity of aggregate demand,will cause:

Suppose advances in computer technology lead to a surge in worker productivity.In the long run,output will _________ and the price level will _________.

Refer to the following figure to answer the next five questions. -Based on the figure,if the economy is currently at point B,then in the long run,we can expect we will move to:

When U.S.goods become more expensive relative to foreign goods,exports will __________ and imports will __________.

The relationship between sticky input prices and flexible output prices explains: