Exam 19: Aggregate Supply and Aggregate Demand

One of the influences that the world economy has on U.S.aggregate demand comes from changes in

If a country is trying to recover from a recent recession,it is unlikely their government officials will decide to ________ because it would ________.

-In the figure above,as the price level increases,the aggregate demand curve will

In a persisting demand-pull inflation,

A fall in the money wage rate ________ aggregate supply and ________.

Demand-pull inflation persists because of

If the price level doubles,it will

The AD curve is a graph depicting the

The aggregate supply curve shows the relationship between

An increase in the quantity of money ________ aggregate demand and ________.

A change in the price level

During the late 1960s,U.S.defense spending increased as the United States fought in Vietnam.This increase in government expenditure on goods and services most likely created

The economy is at full employment and then aggregate demand increases.Describe what happens as an immediate result of the increase in aggregate demand.Describe how the economy adjusts back to full employment.

Potential GDP increased from 4.7 trillion to 16.6 trillion between 1970 and 2013 resulting in economic growth.Also,during this time ________ occurred because ________.

Other things remaining the same,an increase in the price level

Which of the following could result in a recession?

The line showing potential GDP is a vertical straight line because

When the macroeconomic equilibrium is such that real GDP exceeds potential real GDP,the economy is suffering from ________,and the government policy to eliminate this gap will ________ real GDP and ________ the price level.

-According to the figure above,which point or points correspond to full employment?

A fall in the real wage rate ________ firms' profits and leads to ________ in the quantity supplied.