Exam 24: Aggregate Demand, Aggregate Supply, and Business Cycles

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Starting from potential output,if firms become less optimistic about the future and decide to decrease their investment in new capital,then this will shift the curve to the left and generate .

(Multiple Choice)

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Question 61

Starting from potential output,if consumer confidence decreases and consumers decide to spend less,then this will shift the curve to the left and generate .

(Multiple Choice)

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Question 62

When actual output exceeds potential output,there is __ output gap and the inflation rate will .

(Multiple Choice)

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Question 63

As the available technology improves,__ shifts to the _.

(Multiple Choice)

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Question 64

The aggregate supply curve shows the relationship between the amount of output firms want to produce and the ______.

(Multiple Choice)

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Question 65

Starting from potential output,if firms become more optimistic about the future and decide to increase their investment in new capital,then this will shift the curve to the right and generate .

(Multiple Choice)

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Question 66

The self-correcting property of the economy means that output gaps are eventually eliminated by:

(Multiple Choice)

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Question 67

An inflation shock is:

(Multiple Choice)

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Question 68

The fact that output gaps will not last indefinitely,but will be closed by rising or falling prices is the economy's:

(Multiple Choice)

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Question 69

A negative demand shock will shift the curve to the .

(Multiple Choice)

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Question 70

When the economy is in short-run equilibrium,there will be ______ output gap.

(Multiple Choice)

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Question 71

High expected inflation leads to increases in wages and costs and to actual inflation.

(Multiple Choice)

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Question 72

Shifts in ______ can push the economy out of long-run equilibrium.

(Multiple Choice)

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Question 73

If the interest rate in the U.S.falls,U.S.financial assets become attractive to buyers and the U.S.dollars will fall.

(Multiple Choice)

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Question 74

The AS curve slopes upward because:

(Multiple Choice)

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Question 75

The AD curve can be shifted by:

(Multiple Choice)

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Question 76

The economy is in long-run equilibrium:

(Multiple Choice)

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Question 77

A large increase in oil prices is an example of:

(Multiple Choice)

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Question 78

For a given inflation rate,if an increase in threats to domestic security causes the government to increase military spending,then the __ shifts _.

(Multiple Choice)

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Question 79

Starting from potential output,if consumer confidence decreases and consumers decide to spend less,then this will generate a(n)_ gap and inflation will _.

(Multiple Choice)

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Question 80

Showing 61 - 80 of 90

Exam 24: Aggregate Demand, Aggregate Supply, and Business Cycles

Starting from potential output,if firms become less optimistic about the future and decide to decrease their investment in new capital,then this will shift the ______ curve to the left and generate ______.

Starting from potential output,if consumer confidence decreases and consumers decide to spend less,then this will shift the ______ curve to the left and generate ______.

When actual output exceeds potential output,there is ______ output gap and the inflation rate will ____.

As the available technology improves,______ shifts to the _____.

The aggregate supply curve shows the relationship between the amount of output firms want to produce and the ______.

Starting from potential output,if firms become more optimistic about the future and decide to increase their investment in new capital,then this will shift the ______ curve to the right and generate ______.

The self-correcting property of the economy means that output gaps are eventually eliminated by:

An inflation shock is:

The fact that output gaps will not last indefinitely,but will be closed by rising or falling prices is the economy's:

A negative demand shock will shift the ______ curve to the ______.

When the economy is in short-run equilibrium,there will be ______ output gap.

High expected inflation leads to ____ increases in wages and costs and to ____ actual inflation.

Shifts in ______ can push the economy out of long-run equilibrium.

If the interest rate in the U.S.falls,U.S.financial assets become ______ attractive to buyers and the ______ U.S.dollars will fall.

The AS curve slopes upward because:

The AD curve can be shifted by:

The economy is in long-run equilibrium:

A large increase in oil prices is an example of:

For a given inflation rate,if an increase in threats to domestic security causes the government to increase military spending,then the ______ shifts _____.

Starting from potential output,if consumer confidence decreases and consumers decide to spend less,then this will generate a(n)_____ gap and inflation will _____.

Thinking Like an Economist

Comparative Advantage

Supply and Demand

Elasticity

Demand

Perfectly Competitive Supply

Efficiency, Exchange, and the Invisible Hand in Action

Monopoly, Oligopoly, and Monopolistic Competition

Games and Strategic Behavior

Externalities and Property Rights

The Economics of Information

Labor Markets, Poverty, and Income Distribution

The Environment, Health, and Safety

Public Goods and Tax Policy

Spending, Income, and GDP

Inflation and the Price Level

Wages and Unemployment

Economic Growth

Saving, Capital Formation, and Financial Markets

Money, Prices, and the Financial System

Short-Term Economic Fluctuations

Spending, Output, and Fiscal Policy

Monetary Policy and the Federal Reserve

Macroeconomic Policy

Exchange Rates, International Trade, and Capital Flows

Filters

Starting from potential output,if firms become less optimistic about the future and decide to decrease their investment in new capital,then this will shift the curve to the left and generate .

Starting from potential output,if consumer confidence decreases and consumers decide to spend less,then this will shift the curve to the left and generate .

When actual output exceeds potential output,there is __ output gap and the inflation rate will .

As the available technology improves,__ shifts to the _.

Starting from potential output,if firms become more optimistic about the future and decide to increase their investment in new capital,then this will shift the curve to the right and generate .

A negative demand shock will shift the curve to the .

High expected inflation leads to increases in wages and costs and to actual inflation.

If the interest rate in the U.S.falls,U.S.financial assets become attractive to buyers and the U.S.dollars will fall.

For a given inflation rate,if an increase in threats to domestic security causes the government to increase military spending,then the __ shifts _.

Starting from potential output,if consumer confidence decreases and consumers decide to spend less,then this will generate a(n)_ gap and inflation will _.