Exam 23: Aggregate Demand and Aggregate Supply

Below are pairs of GDP growth rates and unemployment rates.Economists would be shocked to see most of these pairs in the U.S.Which pair of GDP growth rates and unemployment rates is realistic?

The sticky-wage theory of the short-run aggregate supply curve says that when the price level is lower than expected,

The model of aggregate demand and aggregate supply

Which of the following shifts short-run aggregate supply left?

An increase in the money supply causes output to rise in the long run.

The sticky-wage theory of the short-run aggregate supply curve says that the quantity of output firms supply will increase if

Which of the following is included in the aggregate demand for goods and services?

The aggregate supply curve is upward sloping in

Which of the following did the Fed do during the recession of 2008-2009?

Other things the same,the aggregate quantity of goods demanded decreases if

If the price level falls,the real value of a dollar

Other things the same,an increase in the price level makes the dollars people hold worth

Technological progress shifts the long-run aggregate supply curve to the right.

The sticky-wage theory of the short-run aggregate supply curve says that when the price level is lower than expected,

The average price level is measured by

At a given price level,an increase in which of the following shifts aggregate demand to the right?

Consider the exhibit below for the following questions. Figure 23-1 -Refer to Figure 23-1.If the economy starts at C,an increase in the money supply moves the economy

Which of the following is correct?

If not all prices adjust instantly to changing economic circumstances,an unexpected fall in the price level leaves some firms with higher-than-desired prices,and these higher-than-desired prices depress sales and induce firms to reduce the quantity of goods and services they produce.

Aggregate demand shifts left when the government