Exam 24: Aggregate Demand and Aggregate Supply Analysis

Use the dynamic model of aggregate demand and supply to illustrate a situation where aggregate demand and short-run aggregate supply are both increasing from year 1 to year 2,resulting in a higher price level and higher level of real GDP at macroeconomic equilibrium in year 2.

Use the dynamic model of aggregate demand and supply to illustrate a situation where the economy is growing but experiencing inflation in the long run.

If technological change occurs in the economy

Which of the following will shift the aggregate demand curve to the right,ceteris paribus?

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

Figure 24-1 -Refer to Figure 24-1.Ceteris paribus,a decrease in interest rates would be represented by a movement from

The long-run aggregate supply curve

What are sticky prices,and how can contracts make them "sticky"?

Which of the following is one reason for the decline in aggregate demand that led to the recession of 2007-2009?

If workers and firms have rational expectations,they form their expectations using

In the dynamic aggregated demand and aggregate supply model,if AD shifts faster than AS

A decrease in investment causes the price level to ________ in the short run and ________ in the long run.

If rapid increases in oil prices caused price levels to increase and real GDP to decrease in the short run,the economy would experience

One factor which brought on the recession of 2007-2009 was the end of the housing bubble.

Suppose the economy is at a short-run equilibrium GDP that lies above potential GDP.Which of the following will occur because of the automatic mechanism adjusting the economy back to potential GDP?

Interest rates in the economy have fallen.How will this affect aggregate demand and equilibrium in the short run?

Because of the slope of the aggregate demand curve,we can say that

Figure 24-2 -Refer to Figure 24-2.Ceteris paribus,a decrease in the price level would be represented by a movement from

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

As the recession persisted into 2009,the unemployment rate in the United States rose to ________,the highest rate since the recession of 2001-2002 and the second highest since the Great Depression.