Exam 12: The Determination of Aggregate Output, the Price Level, and the Interest Rate

If the economy is operating on the relatively vertical segment of the aggregate supply curve,an increase in aggregate demand causes a ________ change in the price level and a ________ change in output.

An increase in aggregate demand when the economy is operating at full capacity is likely to result in

Refer to the information provided in Figure 12.6 below to answer the questions that follow. Figure 12.6 -Refer to Figure 12.6.Which of the following will,unambiguously,increase the price level?

Which of the following sequence of events follows an open market purchase by the Fed?

What determines the slope of the aggregate supply curve is

When the general price level rises,

Refer to the information provided in Figure 12.3 below to answer the questions that follow. Figure 12.3 -Refer to Figure 12.3.Hurricane Katrina destroyed a large portion of the infrastructure along the Gulf of Mexico coast.This caused

If the combination r = 10% and Y = $200 billion is on the IS curve,we know that the combination r = 10% and Y = $300 billion would represent

Refer to the information provided in Figure 12.4 below to answer the questions that follow. Figure 12.4 -Refer to Figure 12.4.Which of the following causes the economy to move from Point A to Point E?

An oil price increase would

Refer to the information provided in Figure 12.4 below to answer the questions that follow. Figure 12.4 -Refer to Figure 12.4.Suppose the economy is at Point A,an increase in the price level moves the economy to Point

If the price level falls,the aggregate supply decreases as a result of the aggregate demand curve shifting left.

Refer to the information provided in Figure 12.2 below to answer the questions that follow. Figure 12.2 -Refer to Figure 12.2.This economy reaches capacity at

An increase in the price level is likely to increase the aggregate amount of output supplied in the short run because

When the economy is producing at full capacity,the aggregate supply curve becomes

Decreasing government spending and an oil embargo will both have an effect towards increasing the price level.

The level of aggregate output demanded falls when the price level rises,because the resulting increase in the interest rate will lead to

Other things equal,an increase in the Z factors shifts

To increase the price level the government could adopt policies that

An increase in the price level will cause a decrease in the aggregate amount of output supplied.