Exam 10: Aggregate Supply and Aggregate Demand

-In the above figure, the short-run aggregate supply curve is SAS1. Suppose that the price level in the economy increases. As a result there is

-In the above figure, point C represents

All of the following shift the LAS curve EXCEPT

-In the above figure, the economy is at point A. Then the price level falls to 90 while the money wage rate does not change. Firms will be willing to supply output equal to

Starting at full employment, a business cycle can be described by the following sequence: ________ equilibrium, ________ equilibrium, ________ equilibrium.

In 2008, Japan's economy suffered as world economies slowed. If authorities in Japan followed the monetarist viewpoint, ________ to bring the economy back to full employment.

-The U.S. fiscal policy implemented in 2008 was an attempt to

A key issue in the presidential election of 2012 between President Obama and Mr. Romney concerned tax rates. President Obama favored increasing taxes, especially on the rich. As a result of a tax increase

Which of the following shifts the aggregate demand curve rightward?

According to the intertemporal substitution effect, a higher price level

Which of the following statements CORRECTLY describes the policy stance of a macroeconomist?

Suppose the economy was initially in a long-run equilibrium. Then the world economy expands so that foreign incomes rise. U.S. aggregate demand ________ and eventually the money wage rate ________.

-The aggregate demand curve illustrates that, as the price level rises

In Japan in 2000 the price level fell by 5 percent and the money wage rate did not change. As a result, there was a

-In the above figure, the shift from point C to point B might be the result of

A decrease in government expenditure shifts the AD curve ________ and a decrease in taxes shifts the AD curve ________.

-In the above figure, the economy is at point A. Then the price level rises to 110 while the money wage rate remains constant. Firms will be willing to supply output equal to

The aggregate demand curve shows that, if other factors are held constant, a

A decrease in short-run aggregate supply ________ the equilibrium price level and ________ the equilibrium quantity of real GDP.

-The above figure illustrates