Figure 13-4 -Refer to Figure 13-4.In the figure above,AD1,LRAS1 and SRAS1 denote AD,LRAS and SRAS in year 1,while AD2,LRAS2 and SRAS2 denote AD,LRAS and SRAS in year 2.Given the economy is at point A in year 1,what is the actual growth rate in GDP in year 2?

A) 2.5% B) 7.3% C) 8.0% D) 10.0% A) 2.5% B) 7.3% C) 8.0% D) 10.0%

Exam 13: Aggregate Demand and Aggregate Supply Analysis

Explain how the economy moves back to full employment from recession.Be sure to detail what happens to short-run aggregate supply,unemployment,equilibrium GDP and the price level.

(Essay)

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(37)

Question 181

Explain how each of the following events would affect the aggregate demand curve. a.Lower interest rates b.A decrease in net exports c.A decrease in the price level d.Slower income growth in other countries e.A decrease in imports

(Essay)

4.9/5

(28)

Question 182

The new classical model has as its central idea that

(Multiple Choice)

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Question 183

The level of aggregate supply in the long run is not affected by

(Multiple Choice)

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Question 184

Figure 13-2 -Refer to Figure 13-2.Ceteris paribus,an increase in the number of workers and firms adjusting to having previously underestimated the price level would be represented by a movement from

(Multiple Choice)

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Question 185

Short-run macroeconomic equilibrium occurs when

(Multiple Choice)

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Question 186

An increase in the price level shifts the aggregate demand curve to the left.

(True/False)

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Question 187

An increase in aggregate demand results in a(n) in the .

(Multiple Choice)

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Question 188

On average,in the recessions since 1950,it has taken ________ for employment to return to its cyclical peak.

(Multiple Choice)

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Question 189

Proponents of the real business cycle model argue that the short-run aggregate supply curve is

(Multiple Choice)

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Question 190

Hurricane Katrina resulted in a decline in oil production infrastructure along the gulf coast.As a result there was an unexpected decline in oil and natural gas supplies in 2005.Suppose that this caused an increase in the price level and a decline in real GDP in 2006.Also assume that potential real GDP continued to grow due to other factors.You can assume the aggregate demand curve did not change.Show the macroeconomic equilibrium for 2005 and 2006 using the dynamic aggregate supply and aggregate demand model.

(Essay)

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Question 191

Workers expect inflation to fall from 4% to 1% next year.As a result,this should

(Multiple Choice)

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Question 192

Explain how menu costs affect the slope of the short-run aggregate supply curve.

(Essay)

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Question 193

The process of an economy adjusting from a recession back to potential GDP in the long run without any government intervention is known as

(Multiple Choice)

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Question 194

Figure 13-4 -Refer to Figure 13-4.In the figure above,AD₁,LRAS₁ and SRAS₁ denote AD,LRAS and SRAS in year 1,while AD₂,LRAS₂ and SRAS₂ denote AD,LRAS and SRAS in year 2.Given the economy is at point A in year 1,what is the actual growth rate in GDP in year 2?

(Multiple Choice)

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Question 195

Which of the following is one reason for the decline in aggregate demand that led to the recession of 2007-2009?

(Multiple Choice)

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Question 196

Most recessions in the United States since World War II have begun with

(Multiple Choice)

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Question 197

Which of the following models has as its central idea that workers and firms have rational expectations?

(Multiple Choice)

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Question 198

An increase in exports decreases aggregate demand.

(True/False)

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Question 199

Which of the following would cause the short-run aggregate supply curve to shift to the right?

(Multiple Choice)

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Question 200

Showing 181 - 200 of 284

Explain how the economy moves back to full employment from recession.Be sure to detail what happens to short-run aggregate supply,unemployment,equilibrium GDP and the price level.

Explain how each of the following events would affect the aggregate demand curve. a.Lower interest rates b.A decrease in net exports c.A decrease in the price level d.Slower income growth in other countries e.A decrease in imports

The new classical model has as its central idea that

The level of aggregate supply in the long run is not affected by

Figure 13-2 -Refer to Figure 13-2.Ceteris paribus,an increase in the number of workers and firms adjusting to having previously underestimated the price level would be represented by a movement from

Short-run macroeconomic equilibrium occurs when

An increase in the price level shifts the aggregate demand curve to the left.

An increase in aggregate demand results in a(n) in the .

On average,in the recessions since 1950,it has taken ________ for employment to return to its cyclical peak.

Proponents of the real business cycle model argue that the short-run aggregate supply curve is

Workers expect inflation to fall from 4% to 1% next year.As a result,this should

Explain how menu costs affect the slope of the short-run aggregate supply curve.

The process of an economy adjusting from a recession back to potential GDP in the long run without any government intervention is known as

Figure 13-4 -Refer to Figure 13-4.In the figure above,AD₁,LRAS₁ and SRAS₁ denote AD,LRAS and SRAS in year 1,while AD₂,LRAS₂ and SRAS₂ denote AD,LRAS and SRAS in year 2.Given the economy is at point A in year 1,what is the actual growth rate in GDP in year 2?

Which of the following is one reason for the decline in aggregate demand that led to the recession of 2007-2009?

Most recessions in the United States since World War II have begun with

Which of the following models has as its central idea that workers and firms have rational expectations?

An increase in exports decreases aggregate demand.

Which of the following would cause the short-run aggregate supply curve to shift to the right?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 13: Aggregate Demand and Aggregate Supply Analysis

Explain how the economy moves back to full employment from recession.Be sure to detail what happens to short-run aggregate supply,unemployment,equilibrium GDP and the price level.

Explain how each of the following events would affect the aggregate demand curve. a.Lower interest rates b.A decrease in net exports c.A decrease in the price level d.Slower income growth in other countries e.A decrease in imports

The new classical model has as its central idea that

The level of aggregate supply in the long run is not affected by

Figure 13-2 -Refer to Figure 13-2.Ceteris paribus,an increase in the number of workers and firms adjusting to having previously underestimated the price level would be represented by a movement from

Short-run macroeconomic equilibrium occurs when

An increase in the price level shifts the aggregate demand curve to the left.

An increase in aggregate demand results in a(n)________ in the ________.

On average,in the recessions since 1950,it has taken ________ for employment to return to its cyclical peak.

Proponents of the real business cycle model argue that the short-run aggregate supply curve is

Workers expect inflation to fall from 4% to 1% next year.As a result,this should

Explain how menu costs affect the slope of the short-run aggregate supply curve.

The process of an economy adjusting from a recession back to potential GDP in the long run without any government intervention is known as

Figure 13-4 -Refer to Figure 13-4.In the figure above,AD1,LRAS1 and SRAS1 denote AD,LRAS and SRAS in year 1,while AD2,LRAS2 and SRAS2 denote AD,LRAS and SRAS in year 2.Given the economy is at point A in year 1,what is the actual growth rate in GDP in year 2?

Which of the following is one reason for the decline in aggregate demand that led to the recession of 2007-2009?

Most recessions in the United States since World War II have begun with

Which of the following models has as its central idea that workers and firms have rational expectations?

An increase in exports decreases aggregate demand.

Which of the following would cause the short-run aggregate supply curve to shift to the right?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

An increase in aggregate demand results in a(n) in the .

Figure 13-4 -Refer to Figure 13-4.In the figure above,AD₁,LRAS₁ and SRAS₁ denote AD,LRAS and SRAS in year 1,while AD₂,LRAS₂ and SRAS₂ denote AD,LRAS and SRAS in year 2.Given the economy is at point A in year 1,what is the actual growth rate in GDP in year 2?