Exam 10: Aggregate Supply and Aggregate Demand

-In the above figure, the short-run aggregate supply curve is SAS and the aggregate demand curve is AD. An inflationary gap exists

In the macroeconomic long run

A lower price level combined with a decrease in real GDP occurs when the

-As the price level falls, the quantity of real wealth ________ and the aggregate quantity of real GDP demanded ________.

If aggregate demand grows only slightly faster than potential GDP, then the economy will ________.

-In the above figure, which movement illustrates the impact of a falling price level and a constant money wage rate?

Which of the following shifts both the LAS and SAS curves?

With an increase in the capital stock, the short-run aggregate supply curve

Which of the following statements is TRUE?

Short-run macroeconomic equilibrium occurs when the quantity of real GDP demanded ________.

In 2008 the money wage rate in Ireland increased by 4 percent while the price level increased by 8 percent. As a result, Ireland's

In the aggregate demand-aggregate supply framework, how does an increase in the price level affect potential GDP?

The AD curve shows the sum of

An increase in the amount of human capital ________ the short-run aggregate supply curve and ________ the long-run aggregate supply curve.

An increase in government expenditure on goods and services

Real GDP supplied -The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. Lotus Land is in short-run macroeconomic equilibrium. In the long run, if aggregate demand does not change, then Lotus Land will return to full employment as ________.

If taxes are increased, the AD curve

-In the above figure, which part corresponds to a fall in the money wage rate?

People expect their incomes will decrease next year. As a result, the ________ will shift ________.

Give examples of factors that decrease aggregate demand. Which way does the aggregate demand curve shift?