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

Real GDP will increase over the long run if

What causes the long-run aggregate supply curve to shift right?

Supply-side inflation is caused by

When total planned real expenditures change due to changes in the cost of borrowing that result from variations in the price level,this is known as the

Europe and Asia both fall into deep economic recessions.What impact will this have on U.S.aggregate demand?

Which of the following statements is correct? I.When economists derive the aggregate demand curve,they are looking at the effect of the price level on one commodity only. II.Any non-price-level change that increases total planned real spending on domestic goods shifts the AD curve to the right.

If the price level increases,

A reduction the amount of oil (a resource)will tend to cause which of the following?

Which of the following will NOT shift the aggregate demand curve?

An increase in the amount of physical capital will cause

Total planned expenditures for domestically produced goods and services consist of

When a higher price level generates an increase in the interest rate that induces consumers to borrow less and buy less,this chain of events is referred to as

The long-run aggregate supply curve is

Which of the following will cause a leftward shift in the aggregate demand curve?

What causes the aggregate demand curve to shift?

When the price level declines,

In the long run,an increase in government spending,other things equal,generates

A weakening in consumer confidence causes a

When investors buy more capital goods because the interest rates have fallen,the aggregate demand curve

Higher interest rates