Exam 8: Aggregate Demand and Aggregate Supply

Reduction of marginal tax rates undertaken explicitly to increase incentives of innovate, take risks, and work hard would be an example of

A major point of difference between President Obama and Senator McCain in the 2008 campaign was

Suppose as a reaction to terrorist attacks the U.S. government were to create a new branch of the military employing 1,000,000 new service men and women to monitor malls, large sporting events, and infrastructure (bridges, dams, refineries, etc.)Hiring and paying these people would likely

The use of a backward-L shaped aggregate supply curve allows us to ________ in a way that other shapes would not.

If a supply-side economist were to make a suggestion to stimulate economic activity which of the following policies would she suggest

When domestic prices rise

Use the Aggregate Supply- Aggregate Demand model to determine which of the following will lead to higher prices

A weakening of the dollar will immediately shift

The aggregate supply-aggregate demand diagram models

Policies focused on putting people to work by reducing the costs to their employers would be considered

An increase in regulation will cause

Which of the following is not a reason for the aggregate demand curve to be downward sloping?

The aggregate demand curve is downward sloping because of the

An increase in government spending will cause

Congress and the President have control of the tax system and government spending. As a result their policies will directly impact

A strengthening of the U.S. dollar relative to the euro can cause problems for

A decrease in government regulation will shift

When domestic prices rise

Which of the following will increase macroeconomic equilibrium real gross domestic product?

If Iraq were to become a stable oil producing friend of the U.S., this would likely