Exam 13: Aggregate Demand and Aggregate Supply

If there was no misperception effect, but there was a profit effect in the short run, then SRAS is ____ and LRAS is ____.

A reduction in the price level will cause the aggregate demand curve to shift to the left.

Foreign direct investment-capital injections from abroad-can also promote economic growth.

What is the importance of measuring per capita GDP?

Stagflation could be caused solely by a shift in the aggregate demand curve.

When you buy a pickup truck to use at home, it is included in the investment component of GDP.

How will firms react to rising output price levels? What reactions can they expect from their employees and suppliers over time?

Keynes was more focused on reducing short-term fluctuations in the business cycle than determinants of long-term economic growth.

The aggregate supply curve is:

The SRAS would be vertical if:

Ben N.Jerry prefers to keep his $10,000 retirement savings buried in the backyard.After an increase in the price level, Ben reduces the amount of goods and services he wants to purchase.Ben's rationalization, that now his retirement savings won't buy as much, is consistent with which explanation of the aggregate demand curve's negative slope?

If exports rose and imports fell,

If the price of oil increased by 15 percent when oil producers believed that other prices were rising 10 percent over the same period, what would happen to the quantity of real output supplied by the oil industry?

The SRAS curve is ____ with real output levels that ____.

Suppose a consumer buys 10 units of good X and 20 units of good Y every year.The following table lists the prices of goods X and Y in the years 2005-2007.Assume that these two goods constitute the typical market basket.Calculate the price indices for these years with 2005 as the base year.Comment on the inflation picture for these years. Year Good Good Y 2005 \ 3 \ 6 2006 4 7 2007 4.5 7.5

The GI Bill provided educational opportunities to many young men returning from military service.Using a production possibilities curve, demonstrate how the GI Bill affected economic growth and explain your answer.

Would it be possible for an increase in taxation to decrease the gross domestic product measured in the U.S.? Why or why not?

What are the major factors that determine investment, and what impact does each have on aggregate demand?

A technological advance may come in either the form of a product or a process innovation.

A reduction in business expectations, combined with the imposition of new tariffs by major trading partners, would have what effect on aggregate demand?