Exam 33: Aggregate Demand and Aggregate Supply

Consider the exhibit below for the following questions. Figure 33-4 -Refer to Figure 33-4. If the economy starts at A and moves to D in the short run, the economy

At a given price level, an increase in which of the following shifts aggregate demand to the right?

Most economists believe that money neutrality

If the dollar appreciates, perhaps because of speculation or government policy, then U.S. net exports

Write the mathematical expression that summarizes the three alternative explanations for the upward slope of the short run aggregate supply curve.

As the price level falls

Refer to Financial Crisis. In the long run, if the Fed does not respond, the change in price expectations created by the crisis shifts

According to the "In the News" article, macroprudential tools

As the price level falls

If money is neutral, then changes in the quantity of money

Other things the same, if the U.S. price level rises, then

Consider the exhibit below for the following questions. Figure 33-4 -Refer to Figure 33-4. If the economy starts at A and there is a fall in aggregate demand, the economy moves

If the actual price level is 165, but people had been expecting it to be 160, then

Other things the same, a decrease in the price level causes the interest rate to

When the dollar appreciates, U.S.

Other things the same, the aggregate quantity of goods demanded in the U.S. increases if

Suppose a boom in stock market prices helps make people feel wealthier. Using the model of aggregate demand and aggregate supply, identify the curves that are affected, and which way these curves would shift.

Suppose the expected price level increases. Which curves in the aggregate demand and aggregate supply model would be affected, and which way would they shift?

When the dollar depreciates, each dollar buys

Which of the following is most commonly used to monitor short-run changes in economic activity?