Exam 9: Aggregate Demand and Aggregate Supply Analysis

An increase in imports increases aggregate demand.

Stagflation usually results from

Stagflation occurs when

All of the following are reasons why the wages of workers and the prices of inputs rise more slowly than the prices of final goods and services except

Using aggregate demand and aggregate supply, explain what happens in the short run if the Bank of Canada lowers interest rates in the economy.Be sure to detail what happens to aggregate demand, the price level, the level of GDP, and unemployment.Assume that the economy is at full employment before the interest rate decrease.

If the economy receives an influx of new workers from immigration,

The ________ curve has a positive slope because as prices of final goods and services rise, prices of inputs rise more slowly.

Which of the following will shift the aggregate demand curve to the left, ceteris paribus?

Spending on the military is essentially categorized as government purchases.How do increases in spending on a military campaign affect the aggregate demand curve?

Which of the following is not a reason why the wages of workers and the prices of inputs rise more slowly than the prices of final goods and services?

At the beginning of the recession of 2008-2009, real GDP in Canada was ________ potential GDP, and in mid-2010, real GDP was ________ potential GDP.

Canadian National Railways (CN)plays such a large role in moving goods around the country that there is usually a close relationship between fluctuations in CN's business and fluctuations in GDP.When CN sees an increase in demand for its services, we can likely expect

The long-run aggregate supply curve shows the relationship between the ________ and ________.

Figure 9.3 Alt text for Figure 9.3: In figure 9.3, a graph comparing real GDP and price level. Long description for Figure 9.3: The x-axis is labelled, real GDP, with 0 at the vertex, and the y-axis is labelled, price level.2 lines are shown; SRAS1 and SRAS2.Line SRAS1 begins a little above the vertex and slopes up to the top right corner.Line SRAS2 follows the same slope as line SRAS1, but is plotted to the right.Points A and B are plotted on line SRAS1.Point A is near the left end of the line and point B is near the center of the line. -Refer to Figure 9.3.Ceteris paribus, an increase in the expected price of an important natural resource would be represented by a movement from

Suppose a developing country experiences a reduction in machinery and capital equipment as foreign entrepreneurs decrease the amount of investment in the economy.As a result,

The Liberal government raised income taxes for individuals earning very high incomes.Explain how these higher income taxes will affect the aggregate demand curve.

Sales of large pickup trucks built in Ontario were hurt in 2016 as a result of the economic slow down in Alberta.How would this decrease in affect Ontario's aggregate demand curve?

Why does the short-run aggregate supply curve shift to the right in the long run, following a decrease in aggregate demand?

In the dynamic aggregate demand and aggregate supply model, inflation occurs if

If, due to a recession, workers begin to leave Canada to search for temporary work in other countries until the recession has ended, this will