Exam 15: Aggregate Demand and Aggregate Supply

Compare changes in the price level for a recession resulting from a shift in aggregate demand to that of a recession resulting from a shift in short run aggregate supply.

In 2009 Congress passed legislation providing states with funds to build roads and bridges. It also instituted tax cuts. Which of these shifts aggregate demand right?

Which of the following is correct?

In which case can we be sure aggregate demand shifts left overall?

The aggregate demand and aggregate supply model implies monetary neutrality

Make a list of expenditures whose sum equals GDP.

The long-run aggregate supply curve shows that by itself a permanent change in aggregate demand would lead to a long-run change

In the long-run, an increase in aggregate demand increases the price level, but not real GDP.

Refer to U.S. Financial Crisis. U.S. net exports would

Which of the following shifts short-run aggregate supply right?

An unexpected increase in the price level that temporarily lowers real wages and induces more employment and output in an economy, occurs in

A decrease in the expected price level shifts short-run aggregate supply to the

In which case can we be sure real GDP rises in the short run?

When taxes increase, consumption

When taxes decrease, consumption

If banks and speculators in the U.S. decided to exchange U.S. dollars for the foreign currencies of other countries, but foreigners do not desire to increase their holdings of U.S. dollars, then U.S. net exports would

Suppose that the economy is at long-run equilibrium. If there is a sharp rise in the stock market combined with a significant increase in the minimum wage, then in the short run

Explain the short-run effects on output and the price level from a decrease in the aggregate-demand curve.

The long-run aggregate supply curve would shift left if the amount of labor available

Which of the following correctly expresses why the short-run aggregate-supply curve slopes upward?