Exam 19: Aggregate Supply and Aggregate Demand

An increase in government expenditure on goods and services ________ aggregate demand,shifting the aggregate demand curve ________ and potentially bringing the ________ phase of the business cycle.

If real GDP is less than potential GDP,then the ________ and the price level ________.

An inflationary gap is created when

A fall in the price level brings a ________ in the real wage rate that ________ profits which leads to ________.

An increase in the price level leads to

________ decreases aggregate supply.

Moving along the aggregate supply curve,

Which of the following does NOT shift the aggregate demand curve?

Stagflation is defined as a period when real GDP ________ and the price level ________.

Initially,demand-pull inflation will

-The change in potential real GDP and aggregate supply shown in the graph above can be a result of

Which of the following changes aggregate supply and shifts the aggregate supply curve? I.change in the price level Ii.change in potential GDP Iii.change in the money wage rate

-In the figure above,the economy is at an equilibrium with real GDP of $16 trillion and a price level of 110.As the economy moves toward its ultimate equilibrium,the ________ curve shifts ________.

The figure above shows aggregate demand curves. -Based on the figure above,the aggregate demand curve will shift from AD0 to AD2 when

The table gives the aggregate demand and aggregate supply schedules for a nation. -Based on the table above,the equilibrium price level is

A macroeconomic equilibrium occurs when the

Along the aggregate supply curve,the quantity of real GDP supplied increases when the price level rises because

An economy experiences a recessionary gap.As the economy adjusts to full employment,the money wage rate

What are the two channels through which the world economy can affect U.S.aggregate demand? State what changes in the world economy can increase U.S.aggregate demand.

How does a cut in interest rates that increases investment affect the quantity of real GDP demanded,the aggregate demand curve,real GDP,and the price level?