Exam 20: Aggregate Demand and Aggregate Supply: Two Causes of Economic Fluctuations

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Pessimism Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of confidence in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time. -Refer to Figure 33-7.Suppose the economy starts at Y.If aggregate demand increases from AD₂ to AD₃,then the economy moves to

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Question 101

Pessimism Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of confidence in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time. -Refer to Pessimism.In the long run,the change in price expectations created by pessimism shifts

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Question 102

Consider the exhibit below for the following questions. Figure 33-4 -Refer to Figure 33-4.If the economy is at A and there is a fall in aggregate demand,in the short run the economy

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Question 103

Recessions in Canada and Mexico would cause

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Question 104

Economic expansions in Europe and China would cause

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Question 105

Pessimism Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of confidence in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time. -Refer to Optimism.How is the new long-run equilibrium different from the original one?

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Question 106

Pessimism Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of confidence in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time. -Refer to Optimism.In the short run what happens to the price level and real GDP?

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Question 107

The short-run effects of an increase in the expected price level include

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Question 108

In which case can we be sure real GDP rises in the short run?

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Question 109

Which of the following would increase output in the short run?

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Question 110

The long-run effect of an increase in household consumption is to raise

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Question 111

Which of the following did the Fed do during the recession of 2008-2009?

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Question 112

Suppose that during World War II the long-run aggregate supply curve shifted right.In order for price and output to have changed in the direction they did,what would have to have happened to aggregate demand?

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Question 113

Imagine the U.S.economy is in long-run equilibrium.Then suppose the value of the U.S.dollar decreases.At the same time,people in the U.S.revise their expectations so that the expected price level rises.We would expect that in the short-run

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Question 114

If output is above its natural rate,then according to sticky-wage theory

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Question 115

Suppose that there is an increase in the costs of production that shifts the short-run aggregate supply curve left.If there is no policy response,then eventually

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Question 116

Changes in the price of oil

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Question 117

Showing 101 - 117 of 117

Exam 20: Aggregate Demand and Aggregate Supply: Two Causes of Economic Fluctuations

Consider the exhibit below for the following questions. Figure 33-4 -Refer to Figure 33-4.If the economy is at A and there is a fall in aggregate demand,in the short run the economy

Recessions in Canada and Mexico would cause

Economic expansions in Europe and China would cause

The short-run effects of an increase in the expected price level include

In which case can we be sure real GDP rises in the short run?

Which of the following would increase output in the short run?

The long-run effect of an increase in household consumption is to raise

Which of the following did the Fed do during the recession of 2008-2009?

Suppose that during World War II the long-run aggregate supply curve shifted right.In order for price and output to have changed in the direction they did,what would have to have happened to aggregate demand?

Imagine the U.S.economy is in long-run equilibrium.Then suppose the value of the U.S.dollar decreases.At the same time,people in the U.S.revise their expectations so that the expected price level rises.We would expect that in the short-run

If output is above its natural rate,then according to sticky-wage theory

Suppose that there is an increase in the costs of production that shifts the short-run aggregate supply curve left.If there is no policy response,then eventually

Changes in the price of oil

Ten Principles of Economics

Ten Principles of Economics: How People Make Decisions

Ten Principles of Economics: How People Interact

Ten Principles of Economics: How the Economy As a Whole Works

Ten Principles of Economics: Part A

Ten Principles of Economics: Part B

Thinking Like an Economist

Thinking Like an Economist: The Economist As Scientist

Thinking Like an Economist: The Economist As Policy Adviser

Thinking Like an Economist: Why Economists Disagree

Thinking Like an Economist: Lets Get Going

Thinking Like an Economist: Graphing a Brief Review

Thinking Like an Economist: Part A

Thinking Like an Economist: Part B

Interdependence and the Gains From Trade

Interdependence and the Gains From Trade: A Parable for the Modern Economy

Interdependence and the Gains From Trade: Comparative Advantage the Driving Force of Specialization

Interdependence and the Gains From Trade: Applications of Comparative Advantage

Interdependence and the Gains From Trade: Conclusion

Interdependence and the Gains From Trade: Part A

Interdependence and the Gains From Trade: Part B

The Market Forces of Supply and Demand

The Market Forces of Supply and Demand:Markets and Competition

The Market Forces of Supply and Demand: Demand

The Market Forces of Supply and Demand: Supply

The Market Forces of Supply and Demand: Supply and Demand Together

The Market Forces of Supply and DemandConclusion How Prices Allocate Resources

The Market Forces of Supply and Demand: Part A

The Market Forces of Supply and Demand: Part B

Elasticity and Its Applications

Elasticity and Its Applications: The Elasticity of Demand

Elasticity and Its Applications: The Elasticity of Supply

Elasticity and Its Applications: Three Applications of Supply,demand,and Elasticity

Elasticity and Its Applications: Part A

Elasticity and Its Applications: Part B

Supply Demand and Government Policies

Supply Demand and Government Policies: Controls on Prices

Supply Demand and Government Policies: Taxes

Supply Demand and Government Policies: Part A

Supply Demand and Government Policies: Part B

Consumers Producers and the Efficiency of Markets

Consumers Producers and the Efficiency of Markets: Consumer Surplus

Consumers Producers and the Efficiency of Markets: Producer Surplus

Consumers Producers and the Efficiency of Markets: Market Efficiency

Consumers Producers and the Efficiency of Markets: Conclusion Market Efficiency and Market Failure

Consumers Producers and the Efficiency of Markets: Part A

Consumers Producers and the Efficiency of Markets: Part B

Application the Cost of Taxation

Application the Cost of Taxation: The Deadweight Loss of Taxation

Application the Cost of Taxation: The Determinants of the Deadweight Loss

Application the Cost of Taxation: Deadweight Loss and Tax Revenue As Taxes Vary

Application the Cost of Taxation: Conclusion

Application the Cost of Taxation: Part A

Application the Cost of Taxation: Part B

Application International Trade

Application International Trade: The Determinants of Trade

Application International Trade: The Winners and Losers From Trade

Application International Trade: The Arguments for Restricting Trade

Application International Trade: Conclusion

Application International Trade: Part A

Application International Trade: Part B

Measuring a Nations Income

Measuring a Nations Income: The Economy's Income and Expenditure

Measuring a Nations Income: The Measurement of GDP

Measuring a Nations Income: The Components of GDP

Measuring a Nations Income: Real Versus Nominal GDP