Exam 9: Aggregate Demand and Supply

What happens if business expectations improve?

Demand-pull inflation scenarios took place in the:

Describe how an increase in the price level will affect net exports and the aggregate demand curve.

Explain how the wealth,export,and interest rate effects cause a negative relationship between the price level and GDP.

The aggregate demand curve shows the level of real GDP that firms will produce at different price levels.

The collapse of home values that began in 2008 led to ____ in Americans' consumption and _____ in their saving rates.

If you know the marginal propensity to consume,you can calculate the marginal propensity to save.

An increase in interest rates will cause the aggregate demand curve to shift to the left.

A rise in real GDP is associated with increased employment.

The aggregate demand curve displays:

The curve that shows how much GDP is demanded at various price levels is called:

Decreased interest rates will shift the aggregate demand curve to the _____ and _____ output demanded.

(Figure: Aggregate Demand Shift) Which of the following may be an explanation for the shift in aggregate demand from A to B?

An increase in aggregate demand can be caused by:

Who recognized the need to develop tools to analyze the macroeconomy as a whole?

Cost-push inflation occurs because of a shift to the:

Describe why the aggregate demand curve has a negative slope.

_____ is the output of goods and services demanded at different price levels.

(Figure: Shifting the AD and SRAS) Starting in long-run equilibrium when the aggregate demand curve is AD₀ and the short-run aggregate supply curve is SRAS₀,if there is a supply shock,such as a drastic increase in the price of oil,this will cause _____ and a movement to a short-run equilibrium at point _____.

A shift to the ________ of the __________ curve would cause the price level to decrease and employment to decrease.