Exam 24: Aggregate Demand and Aggregate Supply Analysis

Suppose the economy is at full employment and firms become more optimistic about the future profitability of new investment.Which of the following will happen in the short run?

All of the following are reasons why the wages of workers and the prices of inputs rise more slowly than the prices of final goods and services except

The automatic mechanism ________ the price level in the case of ________ and ________ the price level in the case of ________.

Monetarism is a school of thought put forth by ________,who argued that the economy would most likely be at potential GDP.

Declines in spending on residential construction are often due to increases in interest rates.The collapse in residential construction prior to and during the recession of 2007-2009 was due more to ________ than to higher interest rates.

The automatic mechanism ________ the price level in the case of ________ and ________ the price level in the case of ________.

Higher personal income taxes

If potential GDP is equal to $600 billion,what does the long-run aggregate supply curve look like?

Proponents of the ________ model argue that the short-run supply curve is vertical.

The level of aggregate supply in the long run is not affected by

Figure 24-3 -Refer to Figure 24-3.Which of the points in the above graph are possible short-run equilibria but not long-run equilibria? Assume that Y1 represents potential GDP.

________ of unemployment during ________ make it easier for workers to ________ wages.

Hurricane Katrina destroyed oil and natural gas refining capacity in the Gulf of Mexico which subsequently drove up natural gas,gasoline,and heating oil prices.Three years later,once the refining capacity was restored,these prices came back down.The restoration of refining capacity should

An increase in the price level will

On average,in the recessions since 1950,it has taken ________ for employment to return to its cyclical peak.

The invention of the integrated circuit by Jack Kilby of Texas Instruments gave rise to the information age.What did this technological change do the short-run supply curve?

Long-run macroeconomic equilibrium occurs when

Figure 24-2 -Refer to Figure 24-2.Ceteris paribus,an increase in the capital stock would be represented by a movement from

Figure 24-4 -Refer to Figure 24-4.Given the economy is at point A in year 1,what is the inflation rate between year 1 and year 2?

If,due to a recession,foreign workers begin to leave the United States to search for temporary work in their home countries until the recession has ended,this will