Exam 9: Aggregate Demand and Supply

The real GDP that firms will produce at varying price levels is:

Which of the following partly explains why the aggregate demand curve is negatively sloped?

The aggregate supply curve in the long run is vertical because wages and other input prices respond completely to a change in price level.

A decrease in regulation would cause aggregate:

Which of the following statements is CORRECT?

_____ occurs when aggregate demand expands so much that equilibrium output exceeds full employment output.

The proportion of additional income that consumers spend is known as the:

Cost-push inflation is a result of too much spending on goods and services.

Which of the following will NOT shift the aggregate supply curve to the right?

Describe the determinants of aggregate demand and their effects on the aggregate demand curve.

Consumption would decrease and the aggregate demand curve would shift:

Suppose energy prices spike.In the short run,output will ____;in the long run,output will _____from its starting point.

The long-run aggregate supply curve is most consistent with the ________ school of economic thought.

The long-run supply curve is:

Too much spending will cause:

________ inflation occurs when a supply shock reduces aggregate supply.

As the aggregate price level declines:

Which of the following events will NOT cause a rightward shift of the aggregate demand curve?

The ______ effect is a reason for the negative slope of the aggregate demand curve.

An increase in government spending will increase aggregate demand.