Exam 22: Aggregate Demand and Supply Analysis

Everything else held constant,aggregate demand increases when

According to aggregate demand and supply analysis,the negative demand shock of 2000-2004 had the effect of

Suppose the U.S.economy is producing at the natural rate of output.A depreciation of the U.S.dollar will cause ________ in real GDP in the short run and ________ in the aggregate price level in the long run,everything else held constant.(Assume the depreciation causes no effects in the supply side of the economy.)

A theory of aggregate economic fluctuations called real business cycle theory holds that

Because shifts in aggregate demand are not viewed as being particularly important to aggregate output fluctuations,they do not see much need for activist policy to eliminate high unemployment."They" refers to proponents of

Which of the following increases aggregate supply in the short-run,everything else held constant?

The aggregate supply curve is the total quantity of

Everything else held constant,if workers expect an increase in the price level,________ aggregate supply ________.

Everything else held constant,a decrease in net exports ________ aggregate ________.

According to aggregate demand and supply analysis,the rising oil prices coupled with the subprime financial crisis in 2007-2008 caused the unemployment rate to ________ and the level of real aggregate output to ________.

The expectations-augmented Phillips curve implies that as expected inflation increases,nominal wages ________ to prevent real wages from ________.

By looking at aggregate demand via its component parts,we can conclude that the aggregate demand curve is downward sloping because

The aggregate demand-aggregate supply framework indicates that the long-run effect of a ________ in the money supply is an increase in ________,everything else held constant.

A group of economists believe that the natural rate of output is affected by aggregate ________ shocks.They contend that the natural rate level of unemployment and output are subject to ________,a departure from full employment levels as a result of past high unemployment.

According to aggregate demand and supply analysis,the negative supply shocks of 1973-1975 and 1978-1980 had the effect of

Suppose the U.S.economy is operating at potential output.A negative supply shock that is accommodated by an open market purchase by the Federal Reserve will cause ________ in real GDP in the long run and ________ in the aggregate price level in the long run,everything else held constant.

Everything else held constant,a decrease in the cost of production ________ aggregate ________.

As approached through the quantity theory of money,aggregate demand is derived from

Suppose the economy is producing at the natural rate of output.A decrease in consumer and business confidence will cause ________ in real GDP in the long run and ________ in the aggregate price level in the long run,everything else held constant.

Suppose the U.S.economy is producing at the natural rate of output.An appreciation of the U.S.dollar will cause ________ in real GDP in the short run and ________ in the aggregate price level in the long run,everything else held constant.(Assume the appreciation causes no effects in the supply side of the economy.)