Exam 24: Aggregate Demand and Aggregate Supply Analysis

Figure 24-2 -Refer to Figure 24-2.Ceteris paribus,an increase in workers and firms adjusting to having previously underestimated the price level would be represented by a movement from

An increase in disposable income will shift the aggregate demand curve to the right.

In September of 2007,the Federal Reserve Board Open Market Committee voted to lower interest rates for the first time that year.Explain how lower interest rates affect the aggregate demand curve.

Which of the following best describes the "wealth effect"?

Because of the slope(s)of the ________,we can say that a decrease in the price level leads to a higher level of real GDP demanded.

Just before,during,and after the recession of 2007-2009,net exports in the United States

The long-run aggregate supply curve shows the relationship between

Explain whether Delta Airlines' sales are likely to fluctuate more or less than the sales of each of the following firms as the economy moves from recession to expansion and back to recession. Whirlpool Corporation (appliance manufacturer) Taco Bell The Boeing Company (aircraft manufacturer) GameStop (video game sales and rentals)

Using an aggregate demand graph,illustrate the impact of an increase in the price level on aggregate demand.

Studies have shown that

Figure 24-2 -Refer to Figure 24-2.Ceteris paribus,a decrease in the expected price of an important natural resource 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 difference between the actual growth rate in GDP in year 2 and the potential growth rate in GDP in year 2?

One factor which brought on the recession of 2007-2009 was the financial crisis in 2008.

Workers and firms both expect that prices will be 3% higher next year than they are this year.As a result

Suppose a developing country experiences a reduction in machinery and capital equipment as foreign entrepreneurs decrease the amount of investment in the economy.As a result

If aggregate demand just increased,which of the following may have caused the increase?

Figure 24-1 -Refer to Figure 24-1.Ceteris paribus,an increase in firms' expectations of the future profitability of investment spending would be represented by a movement from

If firms and workers could predict the future price level exactly,the short-run aggregate supply curve would be

When the economy enters a recession,your employer is unlikely to reduce your wages because ________ during a recession.

When the price level in the United States rises relative to the price level of other countries,________ will rise,________ will fall,and ________ will fall.