Exam 10: Real GDP and the Price Level in the Long Run

Total planned real expenditures measured along the aggregate demand curve are made up of

Which of the following cause the aggregate demand curve to slope downward and to the right?

The real output of the economy under conditions of full employment

-In the above figure, the long-run equilibrium price level is

If there are steady decreases in aggregate supply, the economy will experience

Economic growth can be thought of as

If there is persistent inflation

All of the following are components of aggregate demand EXCEPT

Over the last twenty years, real GDP in the U.S. economy has increased and there has been inflation. This indicates that

-Consider the above figure. At a price level of 150

If persistent inflation was due to declines in long-run aggregate supply, what pattern would be observed?

To find an economy's long-run equilibrium price level, locate the point where ________ and ________ cross and look to the left.

An increase in aggregate demand is shown by

An increase in the amount of physical capital will cause

Which of the following would unambiguously generate deflation?

If other factors are held constant, an increase in the price level

In the long run, persistent inflation in the United States is caused by

Which of the following explains why the aggregate demand curve is downward sloping?

The total of all planned real expenditures in the economy is called

Aggregate demand is