Exam 11: The Determination of Aggregate Output, the Price Level, and the Interest Rate

Refer to the information provided in Figure 11.5 below to answer the questions that follow. Figure 11.5 -Refer to Figure 11.5. A decrease in government spending shifts the ________ to the ________.

Refer to the information provided in Figure 11.4 below to answer the questions that follow. Figure 11.4 -Refer to Figure 11.4. Suppose the economy is at Point A, an increase in the price level moves the economy to Point

Refer to the information provided in Figure 11.8 below to answer the questions that follow. Figure 11.8 -Refer to Figure 11.8. This economy cannot continue to produce Y_{2 (or at Point D)} because

When the economy is producing at full capacity, the aggregate supply curve becomes

Refer to the information provided in Figure 11.3 below to answer the questions that follow. Figure 11.3 -Refer to Figure 11.3. Hurricane Katrina destroyed a large portion of the infrastructure along the Gulf of Mexico coast. This caused

A decrease in the price level raises the real value of wealth.

When the ________ increases, then potential output increases.

An increase in the "Z" factors will decrease the equilibrium price level and decrease aggregate output, ceteris paribus.

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

11.5 The Long-Run AS Curve Refer to the information provided in Figure 11.7 below to answer the questions that follow. Figure 11.7 -Refer to Figure 11.7. The level of aggregate output that can be sustained in the long run without inflation

The relationship between the level of prices and the total demand for all goods and services is known as

An increase in aggregate demand when the economy is operating at full capacity is likely to result in

A decrease in the price level is likely to decrease the aggregate amount of output supplied in the short run because

Refer to the information provided in Figure 11.4 below to answer the questions that follow. Figure 11.4 -Refer to Figure 11.4. Which of the following causes the economy to move from Point E to Point A?

Which of the following sequence of events follows an open market purchase by the Fed?

Refer to the information provided in Figure 11.2 below to answer the questions that follow. Figure 11.2 -Refer to Figure 11.2. This economy reaches capacity at

Refer to the information provided in Figure 11.3 below to answer the questions that follow. Figure 11.3 -Refer to Figure 11.3. The increased use of hydraulic fracturing, or fracking, in North Texas has significantly reduced energy prices across the country. This fracking would cause

The rationale underlying policies to deregulate the economy is that these policies would

To increase the price level the government could

Refer to the information provided in Figure 11.8 below to answer the questions that follow. Figure 11.8 -Refer to Figure 11.8. If the economy is currently at Point B producing output level Y₁