Exam 6: Modelling Real Gdp and the Price Level in the Long Run

Economic growth can be thought of as

The long-run aggregate supply curve

Which of the following is a factor which determines the shape of the aggregate demand curve?

A rise in the price level will have a direct effect on spending because

All of the following explain the downward slope of the aggregate demand curve EXCEPT

The aggregate demand curve usually

When the relative prices of American-made goods go up,the result is

If you have $5 000 and the GDP deflator decreases from 100 to 80

Describe in detail how the labour market interacts with the long-run aggregate supply curve

What information is provided by the aggregate demand curve?

If you have $15 000 and the GDP deflator increases from 80 to 100

When the Harper government decreases the level of taxes in the economy,this has the effect of

The interest rate effect is considered to have

When the relative prices of American-made goods go down,the result is

An indirect effect of an increase in the price level works through

The fact that real GDP decreases when the price level rises is a property of

The horizontal axis for an aggregate demand curve measures

If exports were to rise and imports to fall,leading to an increase in quantity demanded of aggregate output,we would expect as a result,

If all provincial governments were to harmonize the provincial Goods and Services tax to be the same rate and cover the same items as the Federal Goods and Services tax,we would expect

Figure 6-1 -In Figure 6-1,a movement from point A to point B can be explained by