Exam 10: Real GDP and the Price Level in the Long Run

The change in total planned real expenditures resulting from a change in the real value of money balances when the price level changes, all other things held constant, is

What would happen in an economy if total planned production exceeded total planned real expenditures?

If our economy is growing at a constant rate of 5 percent per year, then over a period of 10 years we would expect to see which of the following?

The long-run aggregate supply curve assumes that

Which of the following explains why the aggregate demand curve is downward sloping?

Supply side inflation can be caused by

-Refer to the above figure. A movement from B to D would be a result of

If long-run economic growth is not accompanied by a change in aggregate demand, the result will be

Suppose the Federal Reserve implements expansionary monetary policy where the money supply increases. Which of the following will tend to occur in the long run as a result of this monetary policy action?

What is measured on the vertical axis when we draw a graph of long-run aggregate supply?

An increase in aggregate demand is shown by

Which of the following statements is TRUE?

The wealth effect is another term for the

Economic growth causes the

The total of all planned production for the economy is

Other things being equal, the lower are planned real expenditures along an aggregate demand curve, the

How does aggregate demand curve (AD) differ from an individual demand curve (D)?

The long-run aggregate supply curve will shift to the left when

Demand-side inflation occurs when

The aggregate demand curve plots