Exam 24: Aggregate Demand and Aggregate Supply Analysis

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

All of the following would be considered a positive addition to household wealth except

Figure 24-2 -Refer to Figure 24-2.Ceteris paribus,an increase in the expected price of an important natural resource would be represented by a movement from

All of the following are assumptions made by the dynamic model of aggregate demand and aggregate supply except

Short-run macroeconomic equilibrium occurs when

The monetary growth rule is a plan for increasing the quantity of money

The real business cycle model focuses on how

What is the relationship among the AD,SRAS and LRAS curves when the economy is in macroeconomic equilibrium?

In the long run

Most recessions in the United States since World War II have begun with

There has been a decrease in investment.As a result,real GDP will ________ in the short run,and ________ in the long run.

Why does the short-run aggregate supply curve shift to the right in the long run,following a decrease in aggregate demand?

For the recession of 2007-2009,it took ________ for real GDP to return to its cyclical peak.

A decrease in aggregate demand causes a decrease in ________ only in the short run,but causes a decrease in ________ in both the short run and the long run.

If the U.S.dollar decreases in value relative to other currencies,how does this affect the aggregate demand curve?

Using an aggregate demand graph,illustrate the impact of an increase in the interest rate.

Which of the following is considered a negative supply shock?

If the U.S.dollar increases in value relative to other currencies,how does this affect the aggregate demand curve?

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

Figure 24-3 -Refer to Figure 24-3.Suppose the economy is at point C.If investment spending decreases in the economy,where will the eventual long-run equilibrium be?