Figure 13-4 -Refer to Figure 13-4.In the figure above,AD1,LRAS1 and SRAS1 denote AD,LRAS and SRAS in year 1,while AD2,LRAS2 and SRAS2 denote AD,LRAS and SRAS in year 2.Given the economy is at point A in year 1,what is the actual growth rate in GDP in year 2?

A) 2.5% B) 7.3% C) 8.0% D) 10.0% A) 2.5% B) 7.3% C) 8.0% D) 10.0%

Exam 13: Aggregate Demand and Aggregate Supply Analysis

Using the aggregate supply and demand model,illustrate what happens in the long run when the economy suffers a supply shock.Begin your analysis by assuming the economy has suffered the supply shock in the short run,but has not yet adjusted to it in the long run.

(Essay)

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Question 21

If the economy receives an influx of new workers from immigration,

(Multiple Choice)

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Question 22

Figure 13-2 -Refer to Figure 13-2.Ceteris paribus,an increase in the capital stock would be represented by a movement from

(Multiple Choice)

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Question 23

If aggregate demand just decreased,which of the following may have caused the decrease?

(Multiple Choice)

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Question 24

Spending on the war in Afghanistan is essentially categorized as government purchases.How do increases in spending on the war in Afghanistan affect the aggregate demand curve?

(Multiple Choice)

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Question 25

If full-employment GDP is equal to $4.2 trillion,what does the long-run aggregate supply curve look like?

(Multiple Choice)

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Question 26

Figure 13-2 -Refer to Figure 13-2.Ceteris paribus,an increase in the price level would be represented by a movement from

(Multiple Choice)

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Question 27

Higher personal income taxes

(Multiple Choice)

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Question 28

In the dynamic aggregate demand and aggregate supply model,what is the result of aggregate demand increasing faster than potential real GDP?

(Essay)

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Question 29

Figure 13-1 -Refer to Figure 13-1.Ceteris paribus,a decrease in the value of the domestic currency relative to foreign currencies would be represented by a movement from

(Multiple Choice)

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Question 30

An increase in the price level causes a movement down the aggregate demand curve.

(True/False)

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Question 31

Ceteris paribus,in the long run,a negative supply shock causes

(Multiple Choice)

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Question 32

Figure 13-1 -Refer to Figure 13-1.Ceteris paribus,a decrease in the price level would be represented by a movement from

(Multiple Choice)

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Question 33

Figure 13-4 -Refer to Figure 13-4.In the figure above,AD₁,LRAS₁ and SRAS₁ denote AD,LRAS and SRAS in year 1,while AD₂,LRAS₂ and SRAS₂ denote AD,LRAS and SRAS in year 2.Given the economy is at point A in year 1,what is the actual growth rate in GDP in year 2?

(Multiple Choice)

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Question 34

Which of the following correctly describes the automatic mechanism through which the economy adjusts to long-run equilibrium?

(Multiple Choice)

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Question 35

Which of the following would not be considered a positive addition to household wealth?

(Multiple Choice)

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Question 36

An increase in government spending will result in an increase in the price level and an increase in real GDP in the long run.

(True/False)

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Question 37

Studies have shown that

(Multiple Choice)

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Question 38

One factor which brought on the recession of 2007-2009 was the financial crisis in 2008.

(True/False)

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Question 39

If workers leave a country to seek out better opportunities in another country,then this will

(Multiple Choice)

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Question 40

Showing 21 - 40 of 284

Using the aggregate supply and demand model,illustrate what happens in the long run when the economy suffers a supply shock.Begin your analysis by assuming the economy has suffered the supply shock in the short run,but has not yet adjusted to it in the long run.

If the economy receives an influx of new workers from immigration,

Figure 13-2 -Refer to Figure 13-2.Ceteris paribus,an increase in the capital stock would be represented by a movement from

If aggregate demand just decreased,which of the following may have caused the decrease?

Spending on the war in Afghanistan is essentially categorized as government purchases.How do increases in spending on the war in Afghanistan affect the aggregate demand curve?

If full-employment GDP is equal to $4.2 trillion,what does the long-run aggregate supply curve look like?

Figure 13-2 -Refer to Figure 13-2.Ceteris paribus,an increase in the price level would be represented by a movement from

Higher personal income taxes

In the dynamic aggregate demand and aggregate supply model,what is the result of aggregate demand increasing faster than potential real GDP?

Figure 13-1 -Refer to Figure 13-1.Ceteris paribus,a decrease in the value of the domestic currency relative to foreign currencies would be represented by a movement from

An increase in the price level causes a movement down the aggregate demand curve.

Ceteris paribus,in the long run,a negative supply shock causes

Figure 13-1 -Refer to Figure 13-1.Ceteris paribus,a decrease in the price level would be represented by a movement from

Figure 13-4 -Refer to Figure 13-4.In the figure above,AD₁,LRAS₁ and SRAS₁ denote AD,LRAS and SRAS in year 1,while AD₂,LRAS₂ and SRAS₂ denote AD,LRAS and SRAS in year 2.Given the economy is at point A in year 1,what is the actual growth rate in GDP in year 2?

Which of the following correctly describes the automatic mechanism through which the economy adjusts to long-run equilibrium?

Which of the following would not be considered a positive addition to household wealth?

An increase in government spending will result in an increase in the price level and an increase in real GDP in the long run.

Studies have shown that

One factor which brought on the recession of 2007-2009 was the financial crisis in 2008.

If workers leave a country to seek out better opportunities in another country,then this will

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

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