Exam 10: Aggregate Supply and Aggregate Demand

In the aggregate demand-aggregate supply framework,how does an increase in the price level affect potential GDP?

If the aggregate demand curve shifts ________ faster than the long-run aggregate supply curve,then ________ occurs.

-In the above figure,point C represents

An above full-employment equilibrium occurs when

The reason that it is possible for the economy in the above figure to be at equilibrium E₂ rather than at E₁ is that

Which of the following statements is INCORRECT?

If the money wage rate rises,then the

According to the intertemporal substitution effect,when the price level rises and other things remain the same

________ economists believe that active help from fiscal and monetary policy is needed to insure that the economy is operating at full employment.

An increase in the quantity of capital shifts both the long-run and short-run aggregate supply curves.

Aggregate demand increases if the quantity of money ________.

If higher inflation is expected in the future,then the

-In the figure above,in the short-run macroeconomic equilibrium,

-In the above figure,as the economy adjusts toward equilibrium,the

In the short run,an increase in aggregate demand

In the short-run,a rise in the money wage rate leads to

Stagflation is the combination of

Which school of thought believes that recessions are the result of inappropriate monetary policy?

An individual holds $10,000 in a checking account and the price level rises significantly.Hence

The long-run aggregate supply curve is the relationship between the quantity of real GDP supplied and ________ when ________.