Exam 10: Aggregate Supply and Aggregate Demand

The quantity of real GDP demanded equals $16.4 trillion when the price level is 95. If the price level falls to 90, the quantity of real GDP demanded equals

-In the above figure, as the economy adjusts toward equilibrium, the

What could Keynes have meant by his now famous statement, "in the long run we are all dead?"

-The data in the above table indicate that when the price level is 120

-The above figure illustrates

-Based on the data in the table above, at the short-run equilibrium

In 2009, just after taking office, President Obama approved an $800 billion stimulus package of tax cuts and increased government spending to combat the recession brought on by the financial crisis of 2007. Which group of economists most approved of President Obama's actions?

In the figure above, the economy is at point A when the price level rises to 120. Money wage rates and other resource prices remain constant. Firms are willing to supply output equal to

-The curve labeled A in the above figure is

-In the above figure, the aggregate demand curve is AD?, so the short-run equilibrium level of real GDP is

Which of the following shifts the aggregate demand curve rightward?

-In the above figure, the economy is initially at point B. If the government decreases transfer payments, there is

A change in ________ results in a movement along the short-run aggregate supply curve but does not shift the short-run aggregate supply curve.

How are potential GDP, full employment and the LAS curve related?

The short-run aggregate supply curve

Moving along the short-run aggregate supply curve, ________.

-In the above figure, the economy is at point A and the money wage rate rises by 10 percent. If the price level is constant, firms will be willing to supply output equal to

In the short run, the intersection of the aggregate demand and the short-run aggregate supply curves,

The level of output at which the short-run aggregate supply curve and the aggregate demand curve intersect is the full-employment level of GDP.

The U.S. exchange rate rises. As a result, there is a