Exam 24: Aggregate Demand and Aggregate Supply Analysis

German luxury car exports were hurt in 2009 as a result of the recession. How did this decrease in exports affect Germany's aggregate demand curve?

The level of real GDP in the long run is

If the U.S. dollar increases in value relative to other currencies, how does this affect the aggregate demand curve?

Full-employment GDP is also known as

Suppose the U.S. GDP growth rate is faster relative to other countries' GDP growth rates. U.S. imports will therefore increase faster than U.S. exports, and this will

Figure 24-1 -Refer to Figure 24-1. Ceteris paribus, an increase in the price level would be represented by a movement from

Figure 24-1 -Refer to Figure 24-1. Ceteris paribus, an increase in firms' expectations of the future profitability of investment spending would be represented by a movement from

Figure 24-2 -Refer to Figure 24-2. Ceteris paribus, an increase in the expected price of an important natural resource would be represented by a movement from

If, due to a recession, foreign workers begin to leave the United States to search for temporary work in their home countries until the recession has ended, this will

Explain how the static aggregate demand and aggregate supply model gives us misleading results about the price level, particularly with respect to decreases in aggregate demand. Describe how the aggregate demand curve is different in the dynamic model as compared to the static model. Describe how potential GDP is different in the dynamic model as compared to the static model.

On average, in the recessions since 1950, it has taken ________ for real GDP to return to its cyclical peak.

Using an aggregate demand graph, illustrate the impact of an increase in the growth rate of U.S. GDP relative to the growth rate of foreign GDP.

The new Keynesians emphasize the importance of

How do changes in income tax policies affect aggregate demand?

Where the aggregate demand curve and the short-run aggregate supply curve intersect

Stagflation usually results from

When potential GDP increases, short-run aggregate supply also increases, but long-run aggregate supply does not change.

Following the bursting of the housing bubble in 2005, KB Homes sold ________ new homes and its stock price ________ dramatically. The result was total losses of $2.4 billion between 2007 and 2010.

An increase in investment causes the price level to ________ in the short run and ________ in the long run.

Explain how menu costs affect the slope of the short-run aggregate supply curve.