Question 1

Stagflation usually results from

Accepted Answer

A) a supply shock. 
B) a decrease in aggregate demand. 
C) an increase in aggregate supply. 
D) an increase in aggregate demand. 
A) a supply shock. 
B) a decrease in aggregate demand. 
C) an increase in aggregate supply. 
D) an increase in aggregate demand.

Question 2

An increase in aggregate demand results in a(n)________ in the ________.

Accepted Answer

A) recession; long run 
B) expansion; long run 
C) expansion; short run 
D) recession; short run 
A) recession; long run 
B) expansion; long run 
C) expansion; short run 
D) recession; short run

Question 3

Figure 13-4  
-Refer to Figure 13-4.Given the economy is at point A in year 1,what is the difference between the actual growth rate in GDP in year 2 and the potential growth rate in GDP in year 2?

Accepted Answer

A) 0.3% 
B) 1.1% 
C) 2.7% 
D) 3.7% 
A) 0.3% 
B) 1.1% 
C) 2.7% 
D) 3.7%

Question 4

An increase in aggregate demand causes an increase in ________ only in the short run,but causes an increase in ________ in both the short run and the long run.

Accepted Answer

A) the price level; real GDP 
B) real GDP; real GDP 
C) the price level; the price level 
D) real GDP; the price level 
A) the price level; real GDP 
B) real GDP; real GDP 
C) the price level; the price level 
D) real GDP; the price level

Stagflation usually results from

An increase in aggregate demand results in a(n) in the .

Figure 13-4 -Refer to Figure 13-4.Given the economy is at point A in year 1,what is the difference between the actual growth rate in GDP in year 2 and the potential growth rate in GDP in year 2?

An increase in aggregate demand causes an increase in only in the short run,but causes an increase in in both the short run and the long run.

Economics: Foundations and Models

Trade-Offs,comparative Advantage,and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms,the Stock Market,and Corporate Governance

Comparative Advantage and the Gains From International Trade

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 13: Aggregate Demand and Aggregate Supply Analysis

Stagflation usually results from

An increase in aggregate demand results in a(n)________ in the ________.

Figure 13-4 -Refer to Figure 13-4.Given the economy is at point A in year 1,what is the difference between the actual growth rate in GDP in year 2 and the potential growth rate in GDP in year 2?

An increase in aggregate demand causes an increase in ________ only in the short run,but causes an increase in ________ in both the short run and the long run.

Economics: Foundations and Models

Trade-Offs,comparative Advantage,and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms,the Stock Market,and Corporate Governance

Comparative Advantage and the Gains From International Trade

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

An increase in aggregate demand results in a(n) in the .

An increase in aggregate demand causes an increase in only in the short run,but causes an increase in in both the short run and the long run.