Exam 24: Aggregate Demand and Aggregate Supply Analysis

Figure 24-1 -Refer to Figure 24-1. Ceteris paribus, a decrease in the value of the domestic currency relative to foreign currencies would be represented by a movement from

If the short-run aggregate supply increases by less than the long-run aggregate supply, then, at the short-run equilibrium,

Figure 24-1 -Refer to Figure 24-1. Ceteris paribus, a decrease in the growth rate of domestic GDP relative to the growth rate of foreign GDP would be represented by a movement from

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

Figure 24-1 -Refer to Figure 24-1. Ceteris paribus, an increase in the growth rate of domestic GDP relative to the growth rate of foreign GDP would be represented by a movement from

The international trade effect states that

An increase in the price level will

The long-run aggregate supply curve is vertical.

What are sticky prices, and how can contracts make them "sticky"?

When the price level in the United States rises relative to the price level of other countries, ________ will rise, ________ will fall, and ________ will fall.

Changes in the price level

Which of the following would cause the short-run aggregate supply curve to shift to the left?

Figure 24-1 -Refer to Figure 24-1. Ceteris paribus, an increase in the value of the domestic currency relative to foreign currencies would be represented by a movement from

If stricter immigration laws are imposed and many foreign workers in the United States are forced to go back to their home countries,

The basic aggregate demand and aggregate supply curve model helps explain ________ fluctuations in real GDP and the price level.

When the price level rises from 110 to 115, the aggregate level of GDP supplied rises from $80 billion to $120 billion. This ________ relationship represents the ________ relationship between the quantity of real GDP firms are willing to supply and the price level.

When the price level falls from 135 to 120, the aggregate level of GDP supplied falls from $140 billion to $125 billion. This ________ relationship represents the ________ relationship between GDP and the price level.

All of the following are assumptions made by the dynamic model of aggregate demand and aggregate supply except

Stagflation usually results from

A negative supply shock in the short run causes