Exam 15: Aggregate Demand and Aggregate Supply Analysis

Figure 15-1 -Refer to Figure 15-1.Ceteris paribus,an increase in the value of the domestic currency relative to foreign currencies would be represented by a movement from

An increase in the price level shifts the aggregate demand curve to the left.

If stricter immigration laws are imposed and many foreign workers in the United States are forced to go back to their home countries,

Figure 15-2 -Refer to Figure 15-2.Ceteris paribus,an increase in the price level would be represented by a movement from

Stagflation usually results from

Figure 15-3 -Refer to Figure 15-3.Which of the points in the above graph are possible long-run equilibria?

A decrease in aggregate demand in the economy will have what effect on macroeconomic equilibrium in the long run?

When the economy enters into a recession,your employer is ________ to reduce your wages because ________.

Figure 15-1 -Refer to Figure 15-1.Ceteris paribus,an increase in the price level would be represented by a movement from

Most recessions in the United States since World War II have begun with

Briefly describe monetarism and the monetary growth rule.

Deflation will

Proponents of the real business cycle model argue that the short-run aggregate supply curve is

An increase in aggregate demand results in a(n)________ in the ________.

Inflation is generally the result of total spending growing faster than total production.

Figure 15-2 -Refer to Figure 15-2.Ceteris paribus,an increase in productivity would be represented by a movement from

Explain how the economy moves back to full employment from recession.Be sure to detail what happens to short-run aggregate supply,unemployment,equilibrium GDP and the price level.

If,due to a recession,foreign workers begin to leave the United States to search for temporary work in their home countries until the recession has ended,this will

All of the following are reasons why the wages of workers and the prices of inputs rise more slowly than the prices of final goods and services except

If the short-run aggregate supply increases by less than the long-run aggregate supply,then,at the short-run equilibrium,