Exam 13: The Aggregate Demandaggregate Supply Model

The interest rate effect results from people:

Which of the following would cause an increase in the price level in the long run?

The price index used to illustrate the aggregate demand curve is the:

The wealth effect is best described as resulting from:

If inflation turns out to be higher than expected, this will:

Suppose people are worried about losing their jobs. In the short run, this will:

When prices in the economy have not fully adjusted, we say that:

Which of the following is true about the price level and aggregate supply?

Suppose that an increase in the price level reduces the value of real wealth, which then causes a reduction in consumption but no change in saving. In this case:

An increase in the value of the dollar will:

Explain and illustrate how the long-run equilibrium levels of output and the price level are affected by a technological advance that increases labor productivity.

Suppose housing values fall during a recession. In the short run:

Refer to the following figure to answer the next questions. -Based on the figure, which of the following would cause the long-run equilibrium point to change from point B to point D?

Suppose that you have the following information about the economy, where all figures are in millions of dollars: Full employment output = $2,000 Consumption = $1,200 Investment = $400 Government spending = $500 Net exports = −$200 Because short-run output is __________ full employment output, in the long run we would expect the price level to __________.

Which of the following would cause an increase in employment in the short run?

Shifts in the short-run aggregate supply curve are caused by:

When decision makers have time to fully adjust to changes in the overall price level, we refer to this as:

The economy is in short-run equilibrium when:

Aggregate supply describes a relationship between:

The term ___________ is a popular way to describe the recession-expansion pattern followed by the economy.