Exam 13: The Aggregate Demandaggregate Supply Model

Which of the following causes an increase in short-run aggregate supply?

Unemployment rises and real gross domestic product (GDP) growth slows during the:

When the general price level rises and firms decide not to change their prices in the short run, this can be attributed to:

If workers actively demand pay increases when the price level is rising and are willing to accept pay cuts when the price level is falling, then the short-run aggregate supply curve would be:

Which of the following would shift aggregate demand to the right?

How does the international trade effect explain the slope of the aggregate demand curve?

If consumers decide to save a larger percentage of their income, it will be:

Increases in productivity will:

If prices fall, then real wealth __________ and the quantity of aggregate demand __________.

An increase in the price level that reduces the real value of wealth is likely to __________ consumption and __________ saving.

Suppose a prolonged war in a country destroys 30% of the capital stock. In the long run, the price level will _________ as _________.

Suppose firms increase investment spending to replace worn-out equipment. In the short run, aggregate demand will __________ and output will __________.

An increase in short-run aggregate supply immediately leads to:

When median home prices rise, the value of real wealth __________ and aggregate demand __________.

A rise in the price level that leads to a change in the interest rate, and therefore to a change in the quantity of aggregate demand, will cause:

The value of one's accumulated assets is best defined as:

An increase in expected future prices causes:

If the price level rises by 10%, then all else being equal, the long-run quantity of aggregate supply will:

A supply shock is defined as:

Input prices affect the firm's _________, and output prices affect the firm's _________.