Exam 8: Aggregate Demand and Aggregate Supply

Exhibit 8-2 -Refer to Exhibit 8-2.Based on the given change,what word (rises or falls)should go in blank (3)and blank (4),respectively,to summarize the resulting impact on short run equilibrium?

A rise in aggregate demand and a rise in short-run aggregate supply will definitely

Exhibit 8-4 -Refer to Exhibit 8-4.A shift in short-run aggregate supply from SRAS₂ to SRAS₁ would have been the result of

A decrease in the price level

Personal income taxes rise.This lowers __________,which lowers __________ and the __________ curve shifts __________.

Starting from short-run equilibrium,the following occurs: labor productivity rises and individuals expect higher (future)incomes.What is the effect on the price level and Real GDP in the short run?

An aggregate demand (AD)curve shows the

If investment changes because of a change in a factor other than the price level,then the

The level of Real GDP and the price level always have a direct relationship.

In a two-country world,a decrease in foreign input prices,ceteris paribus,

The real balance effect works through a change in the value of

Suppose the price level is rising and it is widely forecast to rise even further.This forecast might cause __________ of some consumption plans,resulting in __________ the AD curve.

The short-run aggregate supply curve shows the various amounts of real output that producers are willing to

If aggregate quantity supplied is greater than aggregate quantity demanded at a particular price level,then a

In a two-country world,an increase in foreign input prices,ceteris paribus,

Short-run equilibrium exists

Which set of changes is definitely predicted to raise Real GDP in the short run?

Suppose the real exchange rate of 10 Mexican pesos to the dollar moves to 9 pesos to the dollar.The dollar has __________________,making American goods __________ expensive for Mexicans.

Which of the following statements represents a correct and sequentially accurate economic explanation?

The change in the purchasing power of dollar-denominated assets (such as cash holdings)is the