Exam 24: Aggregate Demand and Aggregate Supply Analysis

Suppose the economy is at full employment and firms become more pessimistic about the future profitability of new investment. Which of the following will happen in the short run?

Inflation will

According to Marx, which of the following factors of production did not contribute anything of value to production?

Use the dynamic model of aggregate demand and supply to illustrate a situation where aggregate demand and short-run aggregate supply are both increasing from year 1 to year 2, resulting in a higher price level and higher level of real GDP at macroeconomic equilibrium in year 2.

Lower personal income taxes

The monetary growth rule is a plan for increasing the quantity of money

Which of the following models focuses on how productivity shocks explain fluctuations in real GDP?

If, due to a recession, foreign workers begin to leave the United States to search for temporary work in their home countries until the recession has ended, this will

Figure 24-4 -Refer to Figure 24-4. Given the economy is at point A in year 1, what will happen to the unemployment rate in year 2?

Last week, six Swedish kronor could purchase one U.S. dollar. This week, it takes eight Swedish kronor to purchase one U.S. dollar. This change in the value of the dollar will ________ exports from the United States to Sweden and ________ U.S. aggregate demand.

FedEx plays such a large role in moving packages around the country that there is usually a close relationship between fluctuations in FedEx's business and fluctuations in GDP. Some economists refer to this relationship as the

According to ________, entrepreneurship does not contribute anything of value to production.

The long-run aggregate supply curve shows the relationship between the ________ and ________.

Figure 24-2 -Refer to Figure 24-2. Ceteris paribus, an increase in the labor force would be represented by a movement from

Figure 24-2 -Refer to Figure 24-2. Ceteris paribus, an increase in the price level would be represented by a movement from

When the aggregate demand curve and the short-run aggregate supply curve intersect,

Monetarism is a school of thought put forth by ________, who argued that the economy would most likely be at potential GDP.

Figure 24-1 -Refer to Figure 24-1. Ceteris paribus, an increase in personal income taxes would be represented by a movement from

How do lower taxes affect aggregate demand?

German luxury car exports were hurt in 2009 as a result of the recession. How would this decrease in exports have affected Germany's aggregate demand curve?