Exam 10: Aggregate Supply and Aggregate Demand

Other things equal, along the aggregate demand curve, a higher price level is associated with

When the quantity of money in the economy increases, the

If the economy is in long run equilibrium and then aggregate demand increases, in the long run the increase in aggregate demand means that the

The aggregate demand curve illustrates that, as the price level rises,

economists believe that the economy is self- regulating and always at full employment.

-The above figure depicts an economy

Which of the following increases aggregate demand?

If you have $1,000 in wealth and the price level increases 20 percent, then

-Using the data in the above table, in the short- run macroeconomic equilibrium, there is

When an increase in aggregate demand exceeds the increase in aggregate supply,

The aggregate demand curve shows total expenditures at different levels of national income.

Which of the following would NOT shift the U.S. aggregate demand curve?

An inflationary gap is occurs when

In the above figure, as the economy adjusts toward equilibrium, the

If real GDP exceeds potential GDP,

Stagflation is the combination of

The land of Ur increases its capital stock. As a result, the long- run aggregate supply curve shifts And so does the curve.

-In the above figure, the short- run aggregate supply curve is SAS and the aggregate demand curve is AD. A recessionary gap exists

-In the above figure, if the economy is at point a, an increase in will move the economy to )

-The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. With no changes in aggregate demand or long- run aggregate supply, in long- run macroeconomic equilibrium, the price level will be and real GDP will be .