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

"The aggregate demand curve slopes down for the same reason that the individual demand curve for a good slopes down." Do you agree or disagree with this statement? Why?

The long-run aggregate supply when resources are fully employed

The long-run aggregate supply curve of an economy corresponds to

Which of the following is the main cause of the persistent inflation that we have experienced in the United States?

An aggregate demand curve

When talking about aggregate supply, it is necessary to

If long-run economic growth is NOT accompanied by a change in aggregate demand, the result will be

What are the three forces that cause the aggregate demand curve to slope down? Explain.

The long-run aggregate supply curve is vertical because

Which of the following would likely result in a decrease in aggregate demand?

If the current price level is lower than the equilibrium price level, then it must be TRUE that total planned

Over time in a growing economy, the long run aggregate supply curve will

An economy experiences real growth over time with stable aggregate demand. This would likely result in

What happens when the price level falls?

What determines the total value of aggregate demand for U.S. real GDP?

When the price level declines

The full-employment level of GDP is

Suppose a country has no trade with other countries and people can borrow as many funds as they want at the current interest rate. An increase in the price level will generate

The aggregate demand curve

-Which of the following would cause an increase in aggregate demand (AD)?