Exam 12: B: Aggregate Demand and Aggregate Supply

The following aggregate demand and supply schedules are for a hypothetical economy: Refer to the above data.The change in aggregate demand indicated in the previous question might have been caused by:

The recession that began in 2008 dispelled the idea of The Great Moderation.

The following aggregate demand and supply schedules are for a hypothetical economy: Refer to the above data.If the amount of real output demanded at each price level falls by $200, the equilibrium price level and equilibrium level of real domestic output will fall to:

A movement upward along an existing aggregate demand curve that changes the price level is equivalent to a(n):

Other things equal, an improvement in productivity will:

A decrease in per unit production costs will shift the aggregate supply curve leftward.

An increase in consumer wealth will decrease aggregate demand.

The interest-rate effect is one of the determinants of aggregate demand.

Depreciation of the dollar relative to foreign currencies will tend to increase net exports and aggregate demand.

The determinants of aggregate supply:

The equilibrium price level and level of real output occur where:

Which would increase aggregate supply?

Other things equal, if the international value of the dollar were to depreciate, the:

Other things equal, an improvement in productivity will:

Refer to the diagram given below. When the real output decreases from Q₁ and the price level increases from P₁, there should have been a:

Refer to the diagram given below. When the real output increases from Q₁ and the price level decreases from P₁, there should have been a:

Refer to the diagram given below. Assume that the nominal wages of workers are initially set on the basis of the price level P₂ and that the economy is initially operating at its full-employment level of output Q_f.In the long run, demand-pull inflation could best be shown as:

A decrease in the price level in the aggregate expenditures model would:

An economy is employing 2 units of capital, 5 units of raw materials, and 8 units of labour to produce its total output of 640 units.Each unit of capital costs $10, each unit of raw materials, $4, and each unit of labour, $3.Refer to the above information.If the per unit price of raw materials rises from $4 to $8 and all else remains constant, the per unit cost of production will rise by about:

Refer to the above diagram.If the price level rises above P₁ because of an increase in aggregate demand, the: