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

-Consider the above figure.At a price level of 150,

At each price level,the aggregate demand curve indicates

If a nation's production possibilities curve shifts outward,we should expect its long-run aggregate supply curve to

When the production possibilities curve shifts outward,

The total of all planned real expenditures in the economy is called

The downward slope of the aggregate demand curve shows that

The interest rate effect is part of the reason

What could cause a decrease in the price level and simultaneously an increase in GDP similar to the 1920s in the United States?

-In the above figure,a movement from point B to point A can be explained by

The long run aggregate supply curve (LRAS)also represents

The real-balance effect refers to

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

Which of the following will result in secular deflation?

If there are steady decreases in aggregate supply,the economy will experience

An increase in aggregate demand is shown by

When the price level increases,total planned real expenditures on goods and services falls.All of the following are responsible EXCEPT

A long-run aggregate supply curve may graphically be represented as a

An aggregate demand curve

Which of the following will occur when an economy's price level increases?

Suppose that an economy is initially producing at the full-employment level of output.Now suppose there is a reduction in the money supply.Other things being equal we can expect