Exam 20: Aggregate Demand and Aggregate Supply

Figure 20-2. -Refer to Figure 20-2. Starting from point B and assuming that aggregate demand is held constant, in the long run the economy is likely to experience

The long-run aggregate supply curve shows that by itself a permanent change in aggregate demand would lead to a long-run change

Since the end of World War II, the U.S. has almost always had rising prices and an upward trend in real GDP. To explain this

Which of the following shifts aggregate demand to the left?

If countries that imported goods and services from the United States went into recession, we would expect that U.S. net exports would

Which of the following is correct?

If speculators bid up the value of the dollar in the market for foreign-currency exchange, U.S. aggregate demand would shift to the left.

If the actual price level is 165, but people had been expecting it to be 160, then

Which of the following would cause investment spending to increase and aggregate demand to shift right?

Which of the following did the Fed do during the recession of 2008-2009?

Changes in the price of oil

Which of the following is not a determinant of the long-run level of real GDP?

Suppose the economy is in long-run equilibrium. Senator A succeeds in getting taxes raised. At the same time, Senator B succeeds in getting major new restrictions on logging enacted. In the short run

Which of the following shifts long-run aggregate supply right?

If aggregate demand shifts right, then eventually price level expectations rise. This increase in price level expectations causes the aggregate demand curve to shift to the left back to its original position.

The long-run aggregate supply curve

The downward slope of the aggregate demand curve is based on logic that as the price level rises, consumption, investment, and net exports all fall.

Which of the following would increase output in the short run?

The aggregate quantity of goods and services demanded changes as the price level falls because

If speculators gained greater confidence in foreign economies so that they wanted to buy more assets of foreign countries and fewer U.S. bonds,