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

Refer to the information provided in Figure 12.5 below to answer the questions that follow. Figure 12.5 -Refer to Figure 12.5.An increase in government spending shifts the ________ to the ________.

Refer to the information provided in Figure 12.7 below to answer the questions that follow. Figure 12.7 -Refer to Figure 12.7.The level of aggregate output that can be sustained in the long run without inflation

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 oil price increase could move the economy to Point

Refer to the information provided in Figure 12.5 below to answer the questions that follow. Figure 12.5 -Refer to Figure 12.5.As a result of ________,the equilibrium interest rate increases and the equilibrium output level decreases.

Coal is used as a source of energy in many manufacturing processes.Assume a long strike by coal miners reduced the supply of coal and increased the price of coal.This would cause

Refer to the information provided in Figure 12.1 below to answer the questions that follow. Figure 12.1 -Refer to Figure 12.1.Between the output levels of $500 billion and $1,000 billion,the relationship between the price level and output is

The graph that shows the relationship between the aggregate quantity of output supplied by all the firms in an economy and the overall price level is

If input prices change at exactly the same rate as output prices,the aggregate supply curve will be vertical.

The long-run aggregate supply curve is vertical if

Refer to the information provided in Figure 12.4 below to answer the questions that follow. Figure 12.4 -Refer to Figure 12.4.During the 1990s,many firms in the United States were investing in new capital.If the economy was originally at Point A,this would have caused a movement to Point

Refer to the information provided in Figure 12.5 below to answer the questions that follow. Figure 12.5 -Refer to Figure 12.5.An increase in the Z factors shifts the ________ to the ________.

An increase in the price level cause aggregate demand to increase.

Refer to the information provided in Figure 12.8 below to answer the questions that follow. Figure 12.8 -Refer to Figure 12.8.For this economy to produce Y₁ and sustain it without inflation

________ shifts the Fed rule to the right.

Related to the Economics in Practice on p.554: In the simple "Keynesian" view,the aggregate supply curve

If wages do not fully adjust to changes in prices,the aggregate supply curve is vertical.

When the ________ increases,then potential output increases.

If there is an increase in the percentage of employees whose wages adjust automatically with changes in the price level,the aggregate supply curve will become

An increase in the price of a key input in production,like oil,increases aggregate supply.

The quantity of output supplied at different price levels is represented by the