Exam 28: Aggregate Demand and Aggregate Supply

Higher interest rates caused by an increase in the price level creates:

Sticky wages cause:

One reason stagflation is difficult to recover from is because:

Changes in expectations about future price levels:

An aggregate supply curve that slopes upward must be:

When the housing bubble popped,the effect of the negative demand side shock and the negative supply side shock were the same on:

When the economy experiences a permanent supply side shock that shifts the long-run aggregate supply to the right,the short run aggregate supply curve:

If the government were to increase income taxes,we would predict:

As prices rise,people:

If the economy is in a recession,and the government increases its spending to bring the economy back to its long-run equilibrium,the long-run level of output will:

A basic factor of production that is used to produce output is:

Aggregate supply is:

When the price level increases people:

The aggregate supply and aggregate demand model describes the interaction of which macroeconomic variables?

Which of the following is a component of aggregate demand?

Consumption spending:

The long-run result of government intervention in responding to a recession is:

Sticky prices refers to:

An asset-price bubble is caused by:

If a positive permanent supply shock were to occur,the resulting equilibrium would be: