Exam 20: Aggregate Demand and Aggregate Supply: Part A

Name two macroeconomic variables that decline when an economy goes into recession,and name one macroeconomic variable that rises.

Using the aggregate demand and aggregate supply model,an increase in what curve is by itself consistent with the changes in prices and output that occurred during World War II?

Compare changes in the price level for a recession resulting from a shift in aggregate demand to that of a recession resulting from a shift in short run aggregate supply.

Other things the same,what happens to the price level and the quantity of output when the short run aggregate supply curve shifts to the right?

Explain the short-run effects on output and the price level from a decrease in the aggregate-demand curve.

Briefly state the three key facts about economic fluctuations.

What do most economists believe concerning the relation between the price level and real output?

The sticky-price theory helps explain what feature of the aggregate demand and aggregate supply model?

Suppose technology advances within a nation.Which curves in the aggregate demand and aggregate supply model would be affected,and which way would they shift?

What curve shows the quantity of goods and services that firms choose to produce and sell at each price level?

The wealth effect helps explain what feature in the aggregate demand and aggregate supply model?

Who wrote the 1936 book titled The General Theory of Employment, Interest, and Money?

Figure 33-12. -Refer to Figure 33-12.Identify periods 1 and 2.

Using the aggregate demand and aggregate supply model,a decrease of what curve is by itself consistent with the changes in prices and output that occurred during the onset of the Great Depression?

Changes in what four variables will shift the long run aggregate supply curve?

List the three reasons for why the aggregate-demand curve slopes downward.

Explain the effect on output and price level from an increase in the short-run aggregate-supply curve.

Suppose a nation experiences increased immigration from abroad.Which curves in the aggregate demand and aggregate supply model would be affected,and which way would they shift?

Write the mathematical expression that summarizes the three alternative explanations for the upward slope of the short run aggregate supply curve.