Exam 12: The Determination of Aggregate Output, the Price Level, and the Interest Rate

Refer to the information provided in Figure 12.5 below to answer the questions that follow. Figure 12.5 -Refer to Figure 12.5.As a result of ________,the equilibrium interest rate increases and the equilibrium output level increases.

Refer to the information provided in Figure 12.1 below to answer the questions that follow. Figure 12.1 -Refer to Figure 12.1.Between the output levels of $500 billion and $1,000 billion,the relationship between the price level and output is

Refer to the information provided in Figure 12.5 below to answer the questions that follow. Figure 12.5 -Refer to Figure 12.5.As a result of ________,the equilibrium interest rate increases and the equilibrium output level decreases.

Refer to the information provided in Figure 12.1 below to answer the questions that follow. Figure 12.1 -Refer to Figure 12.1.At aggregate output levels below $500 billion,this economy is most likely experiencing

Refer to the information provided in Figure 12.1 below to answer the questions that follow. Figure 12.1 -Refer to Figure 12.1.This economy reaches capacity at

An increase in the price level shifts the IS curve to the left.

If the economy is operating way below capacity,an increase in aggregate demand causes a ________ change in the price level and ________ change in output.

What determines the slope of the aggregate supply curve is

When the aggregate supply curve is horizontal,

Related to the Economics in Practice on p.554: In the simple "Keynesian" view,the aggregate supply curve

An increase in government purchases shifts the ________ curve to the ________.

The aggregate demand curve

All of the following shift the short-run aggregate supply curve EXCEPT

Other things equal,an increase in government spending ________ the equilibrium interest rate and ________ equilibrium output.

The Fed is leaning against the wind when it sets a high interest rate during a recession.

Refer to the information provided in Figure 12.5 below to answer the questions that follow. Figure 12.5 -Refer to Figure 12.5.An increase in the Z factors shifts the ________ to the ________.

Refer to the information provided in Figure 12.3 below to answer the questions that follow. Figure 12.3 -Refer to Figure 12.3.During the 1980s,many firms in the United States were not investing in new capital.This would have caused

Refer to the information provided in Figure 12.6 below to answer the questions that follow. Figure 12.6 -Refer to Figure 12.6.Which of the following will,unambiguously,increase the price level?

Refer to the information provided in Figure 12.7 below to answer the questions that follow. Figure 12.7 -Refer to Figure 12.7.The level of aggregate output that can be sustained in the long run without inflation