Exam 24: Aggregate Demand and Aggregate Supply Analysis

When people became less concerned with the underlying value of their houses and instead focused on the expectations of the prices of their houses increasing,________ occurred.

Explain the three reasons the aggregate demand curve slopes downward.

Figure 24-1 -Refer to Figure 24-1.Ceteris paribus,an increase in households' expectations of their future income would be represented by a movement from

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

On the long-run aggregate supply curve

Last week,13 Mexican pesos could purchase one U.S.dollar.This week,it takes 11 Mexican pesos to purchase one U.S.dollar.This change in the value of the dollar will ________ exports from the United States to Mexico and ________ U.S.aggregate demand.

Potential GDP refers to the level of

Which of the following is one explanation as to why the aggregate demand curve slopes downward?

Which of the following could explain why there is an increase in potential GDP but the equilibrium level of GDP falls?

Which of the following models relies on emphasizing the importance of sticky wages and prices?

Why does the short-run aggregate supply curve shift to the left in the long run,following an increase in aggregate demand?

At a long-run macroeconomic equilibrium,real GDP is always equal to potential GDP.

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

Starting from long-run equilibrium,use the basic aggregate demand and aggregate supply diagram to show what happens in both the long run and the short run when there is an increase in wealth.

Which of the following models advocate that the quantity of money should be increased at a constant rate?

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

The basic aggregate demand and aggregate supply curve model helps explain ________ fluctuations in real GDP and the price level.

According to the real business cycle model,________ in aggregate demand ________ GDP.

A rapid increase in the price of oil will tend to

A decrease in the price level will