Exam 10: Aggregate Supply and Aggregate Demand

In long-run macroeconomic equilibrium,the

If real GDP is less than potential GDP,then the economy is ________ equilibrium.

The long-run aggregate supply curve shows the

In a short-run macroeconomic equilibrium,real GDP exceeds potential GDP.If aggregate demand does not change,then the

Fluctuations in aggregate demand and aggregate supply explain why real GDP fluctuates.

The economy is in its short run equilibrium at the point where the

The data in the above figure indicate that the economy will be in a long-run macroeconomic equilibrium at a price level of

Which of the following helps determine the growth rate of potential GDP? I. capital accumulation II. technology advances III. growth in the quantity of money

The Great Depression,in which real GDP fell and unemployment rose,can be characterized as a ________.

-The above figure depicts an economy with a short-run equilibrium

Explain the relationship of the long-run aggregate supply curve,the short-run aggregate supply curve and the aggregate demand curve in determining a long-run and short-run macroeconomic equilibrium.

Suppose the price level rises and the money wage remains constant.This set of changes leads to

-In the above figure,when the economy is in a long-run equilibrium,real GDP will be

The government increases taxes.As a result,in the short run,real GDP ________ and the price level ________.

An economy is at full employment.Which of the following events can create a recessionary gap?

-The figure above illustrates aggregate demand and aggregate supply in Sparta.Sparta's price level will rise above 100 if ________.

An increase in the level of technology shifts

The aggregate demand curve illustrates that,as the price level rises,

Your real wealth is measured as the

The U.S.monetary policy implemented in 2008 was an attempt to