Exam 26: Bringing in the Supply Side: Unemployment and Inflation

The aggregate supply curve will shift to the left if

An economist who claims that an increase in government spending would result mainly in a higher price level believes the economy is operating where the

Figure 10-3 In Figure 10-3, both graphs (a) and (b) indicate that the economy is experiencing a(n)

The aggregate supply curve shows how much the nation's businesses are willing and able to produce at each price level.

Table 10-1 In Table 10-1, what is the equilibrium level of real output and the equilibrium price?

If the prices of inputs change, what will happen to the aggregate supply curve?

Figure 10-7 Which of the diagrams in Figure 10-7 shows an economic expansion caused primarily by a change in aggregate demand?

An inflationary gap will occur when

The underlying cause of inflation is

The economy's self-correcting mechanism appears to be more efficient at curing

Like the supply curve for individual goods and services, the aggregate supply curve slopes upward and to the right.

The example of an inflationary gap in 2006-2007 suggested that the economy adjusts

Using the aggregate demand/aggregate supply model, explain the difference in the employment prospects of the graduates of 2007 and 2009.

Figure 10-2 In Figure 10-2, which segment of the aggregate supply curve has the smallest multiplier effect?

Equilibrium GDP in excess of potential GDP eventually will cause the aggregate

Most economists agree that the economy will adjust to a recessionary gap, but the adjustment process

Supply-side economics concerns itself with the interaction between demand and supply, the price level, and real GDP.

Quantity supplied of all goods and services at different price levels is known as

Figure 10-6 In Figure 10-6, which graph best illustrates the effect of the beginning of the Iraq war in 2003?

If aggregate quantity demanded exceeds aggregate quantity supplied, we can expect an unplanned