Exam 15: Aggregate Demand and Aggregate Supply

Below are pairs of GDP growth rates and unemployment rates. Economists would be shocked to see most of these pairs in the U. S. Which pair of GDP growth rates and unemployment rates is realistic?

Figure 15-2. -Refer to Pessimism. How is the new long-run equilibrium different from the original one?

An increase in the price level and a reduction in output would result from

Which of the following is not a determinant of the long-run level of real GDP?

When the price level falls, people want to

Which of the following would cause prices and real GDP to rise in the short run?

Make a list of expenditures whose sum equals GDP.

Other things the same, a decrease in the price level makes the dollars people hold worth

Other things the same, as the price level falls, which of the following increases?

The initial impact of the repeal of an investment tax credit is to shift

The long-run aggregate supply curve shifts right if

Other things the same, if the capital stock increases, then in the long run

Which of the following would raise the price level in both the short and long run?

If the government provides an investment tax credit and increases income taxes,

During World War II, the economy's production increased about

During recessions

When the price level falls

Real and nominal variables are highly intertwined, and changes in the money supply change real GDP. Most economists would agree that this statement accurately describes

Like real GDP, investment fluctuates, but it fluctuates much less than real GDP.

Wages tend to be sticky