Exam 20: Aggregate Demand and Aggregate Supply

Which of the following correctly describes actions of the U.S. government during the recession of 2008-2009?

Which of the following statements concerning the aggregate demand and aggregate supply model is correct?

If aggregate demand shifts left, then in the short run

The average price level is measured by

Aggregate demand shifts left if

Suppose the economy is in long-run equilibrium. If there is an increase in the supply of labor as well as an increase in the money supply, then we would expect that in the short-run,

Which of the following did not happen during the onset of the Great Depression?

Name two macroeconomic variables that decline when an economy goes into recession, and name one macroeconomic variable that rises.

The explanations for the slopes of the aggregate demand and short-run aggregate supply curves are the same as the explanations for the slopes of demand and supply curves for specific goods and services.

Which of the following is correct concerning recessions?

The economic boom of the early 1940s resulted mostly from

The aggregate-demand curve shows the quantity of domestic goods and services that households, firms, the government, and customers abroad want to buy at each price level.

Figure 33-7. -Refer to Optimism. In the short run what happens to the price level and real GDP?

Other things the same, as the price level rises, exchange rates

Which of the following would cause stagflation?

An unexpected increase in the price level that temporarily lowers real wages and induces more employment and output in an economy, occurs in

At the end of World War II many European countries were rebuilding and so were eager to buy capital goods and had rising incomes. We would expect that the rebuilding increased aggregate demand in

Which of the following would both shift aggregate demand right?

When taxes increase, consumption

Aggregate demand shifts right if at a given price level