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

Suppose the Federal Reserve implements expansionary monetary policy where the money supply increases.Which of the following will tend to occur in the long run as a result of this monetary policy action?

The long-run aggregate supply when resources are fully employed

When the price level falls,

When the economy is in long-run equilibrium,the price level adjusts so as to equate which two values with one another?

Which one of the following would NOT increase aggregate demand?

Over the last twenty years,real GDP in the U.S.economy has increased and there has been inflation.This indicates that

When interest rates rise,

According to the interest rate effect,an increase in the price level,if other factors are held constant,will lead to

An increase in total planned real expenditures that is caused by a factor other than the price level will lead to the

Which of the following would cause the long-run aggregate supply curve to shift to the right?

If persistent inflation was due to declines in long-run aggregate supply,what pattern would be observed?

What is the aggregate demand curve and what does it represent?

What happens when the price level falls?

When talking about aggregate supply,it is necessary to

Which of the following can cause supply-side inflation?

-Refer to the above figures.Which panel(s)represent the effect of an increase in the price level?

The aggregate supply curve shows

-Refer to the above figure.A movement from B to C would be NOT be the result of

-Refer to the above figures.Which panel(s)represent economic growth?

Which of the following statements is true about the interest rate effect?