Exam 27: Aggregate Demand and Aggregate Supply

The aggregate supply curve is found by summing up the supply curves for all the different products in the economy.

The discovery and dissemination of a new cost-saving technology

In the long run,unusually high unemployment

In the short run,a decrease in government purchases would

-Refer to Figure 15-7.If the economy is currently at a price level of 120 and real GDP is $6.5 trillion,an increase in taxes will,in the short run,

The aggregate demand curve slopes downward for the same reason that a microeconomic demand curve slopes downward.

If the government decreases taxes,which of the following would occur?

If the money demand curve shifts rightward,the AD curve also shifts rightward.

If Congress voted to eliminate the minimum wage,which of the following would most likely occur?

In the long run,supply shocks

A movement down and to the left along the aggregate supply curve will occur when

If the government announces a big tax cut,which of the following combinations of events would be most likely to occur?

-In the short run,a contractionary fiscal policy would cause

The economy's long-run aggregate supply curve

If the Fed buys bonds in an open market operation,which of the following is most likely to occur?

The aggregate supply curve would shift downward if

The aggregate supply curve describes the same relationship between price and quantity as a microeconomic supply curve.

If a demand shock causes an economy to operate at a point above potential GDP,then

Which of the following sequences results from an increase in the price level?

-Refer to Figure 15-4.If the economy is currently at point X,an increase in output will