Exam 10: Aggregate Supply and Aggregate Demand

An inflationary gap is occurs when

Higher resource costs shift the

The short-run aggregate supply curve shifts when I.the full-employment quantity of capital changes. II.technology advances.

The long-run aggregate supply curve is the relationship between the quantity of real GDP supplied and ________ when ________.

Over time in a growing economy, the long-run aggregate supply curve will

If the money wage rate rises, then the

Real GDP supplied -The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. With no changes in aggregate demand or long-run aggregate supply, in long-run macroeconomic equilibrium, the price level will be ________ and real GDP will be ________.

If there is an increase in technology, the long-run aggregate supply curve shifts rightward, but the short-run aggregate supply curve does not shift.

Which of the following occurs while moving along a short-run aggregate supply curve?

-The above figure illustrates

The supply of real GDP is a function of

An increase in the quantity of capital increases ________ and increase in the full-employment quantity of labor increases ________.

A decrease in the money wage rate

-The data in the above table show that when the price level is 120, if aggregate demand does not change then the

-In the above figure, the economy is initially at point B. If the exchange rate falls, there is

-In the above figure, the economy is initially at point B. If the Fed increases the quantity of money, there is

Suppose that the money wage in the economy increases by 8 percent. As a result the

-In the above figure, the economy is initially at point B. Then the price level falls by 10. The wealth effect will help

A change in ________ creates a movement along the aggregate demand curve but does not shift the aggregate demand curve.

According to the intertemporal substitution effect, when the price level increases, the interest rate