Exam 31: Aggregate Demand and Aggregate Supply

If the price level increases in the United States relative to foreign countries,then American consumers will purchase more foreign goods and fewer U.S.goods.This statement describes:

The determinants of aggregate supply:

The economy's long-run aggregate supply curve:

In an effort to avoid recession,the government implements a tax rebate program,effectively cutting taxes for households.We would expect this to:

Menu costs:

The aggregate supply curve (short run)becomes steeper as the economy moves rightward and upward along it.

(Consider This)The idea that the price level readily moves upward but not downward is called the:

The equilibrium price level and level of real output occur where:

An increase in investment spending caused by higher expected rates of return will:

An increase in net exports will shift the AD curve to the:

Answer the question on the basis of the following information.An economy is employing 2 units of capital,5 units of raw materials,and 8 units of labor to produce its total output of 640 units.Each unit of capital costs $10;each unit of raw materials,$4;and each unit of labor,$3. Refer to the information.If the per-unit price of raw materials rises from $4 to $8 and all else remains constant,the aggregate:

The size of the multiplier associated with an initial increase in spending will be:

The immediate-short-run aggregate supply curve is:

Which one of the following would not shift the aggregate demand curve?

Prices and wages tend to be:

A rightward shift of the AD curve in the very flat part of the short-run AS curve will:

Answer the question on the basis of the following table for a particular country in which C is consumption expenditures,I_g is gross investment expenditures,G is government expenditures,X is exports,and M is imports.All figures are in billions of dollars.Each question is independent of other question using the same table,unless otherwise stated. 128 125 122 119 116 \ 18 20 22 24 26 \ 2 4 6 8 10 \ 3 3 3 3 3 \ 1 2 3 4 5 \ 5 4 3 2 1 Refer to the table.If the amounts of GDP supplied at the price levels shown (in descending order)are $45,$43,$40,$37,and $31,the equilibrium level of real GDP will be:

Suppose that technological advancements stimulate $20 billion in additional investment spending.If the MPC = .6,how much will the change in investment increase aggregate demand?

In the immediate short run,both input and output prices are fixed.

If aggregate demand increases and aggregate supply decreases,the price level: