Exam 24: Aggregate Demand and Aggregate Supply Analysis

If full-employment GDP is equal to $4.2 trillion,what does the long-run aggregate supply curve look like?

In the long run,

When the aggregate demand curve and the short-run aggregate supply curve intersect

According to ________,entrepreneurship does not contribute anything of value to production.

An increase in exports decreases aggregate demand.

Which of the following models has as its central idea that workers and firms have rational expectations?

According to the real business cycle model

An increase in the price level results in a(n)________ in the quantity of real GDP demanded because ________.

Figure 24-1 -Refer to Figure 24-1.Ceteris paribus,a decrease in the growth rate of domestic GDP relative to the growth rate of foreign GDP would be represented by a movement from

The level of real GDP in the long run is called

Monetarists believe that the quantity of money should be increased at an increasing rate.

Explain how menu costs affect the slope of the short-run aggregate supply curve.

Figure 24-1 -Refer to Figure 24-1.Ceteris paribus,a decrease in the price level would be represented by a movement from

Suppose the U.S.GDP growth rate is faster relative to other countries' GDP growth rates.This will

Figure 24-3 -Refer to Figure 24-3.Which of the points in the above graph are possible short-run equilibria?

Suppose a recession occurs as a result of a supply shock,and instead of the economy naturally working its way back to equilibrium,the government uses policy to shift the aggregate demand curve to fight the recession.Using policy this way would

An increase in government spending will result in an increase in the price level and an increase in real GDP in the long run.

An increase in the price level shifts the aggregate demand curve to the left.

The level of real GDP in the long run is

The ________ curve has a positive slope because as prices of final goods and services rise,prices of inputs rise more slowly.