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

What are three causes of supply-side inflation?

The long-run aggregate supply curve

Which of the following will cause the long-run aggregate supply curve to shift? I. Changes in technology. II) Changes in government spending. III) Changes in the money supply.

For supply-side inflation to occur in the long run,

What causes demand-side inflation? What causes supply-side inflation?

-Refer to the above figures. Which panel(s) represent the effect of a decrease in labor productivity?

When the relative prices of U.S.-manufactured goods go up, the result is

The aggregate demand curve has

-In the above figure, the long-run equilibrium real GDP is

Long-run aggregate supply and a country's production possibility curve (PPC)

-Refer to the above figures. Which panel(s) represent economic growth?

Europe and Asia both fall into deep economic recessions. What impact will this have on U.S. aggregate demand?

The long-run aggregate supply will increase when

Economic growth can be depicted as

Which of the following is NOT true about the aggregate demand curve?

-The curve in the above figure will shift to the right when

-Refer to the above figure. A movement from B to C would be NOT be the result of

The aggregate demand curve shows

If a nation's production possibilities curve shifts outward, we should expect its long-run aggregate supply curve to

Over the last twenty years, real GDP in the U.S. economy has increased and there has been inflation. This indicates that