Exam 26: Aggregate Supply and Aggregate Demand

Consider an economy starting from a position of full employment. Which one of the following changes does not occur as a result of a decrease in aggregate demand?

Which one of the following newspaper quotations describes a leftward shift of the LAS curve?

Everything else remaining the same, an increase in the expected inflation rate

Autoworkers agree to a cut in the nominal wage rate. This event ________ short-run aggregate supply and ________ long-run aggregate supply.

Suppose that the E.U. economy goes into an expansion. Canadian real GDP ________ and Canadian unemployment ________ in the short run.

Use the figure below to answer the following questions. Figure 26.2.1 -Refer to Figure 26.2.1. Which graph illustrates what happens when expected future income increases?

Use the figure below to answer the following questions. Figure 26.3.2 -Refer to Figure 26.3.2. Currently in Mythlo

The world goes into an expansion. Starting from a position of long-run equilibrium, what effect does this event have on Canada's economy in the short run?

If real GDP is greater than potential GDP, we would expect

Which of the following statements about the Keynesian view of the macroeconomy is incorrect?

If real GDP is greater than potential GDP, the economy is

Use the figure below to answer the following questions. Figure 26.3.2 -Refer to Figure 26.3.2. If the economy of Mythlo automatically adjusts to long-run equilibrium, then

Classical macroeconomists recommend

The quantity of real GDP demanded does not depend on decisions made by

Use the figure below to answer the following questions. Figure 26.1.1 -Refer to Figure 26.1.1. Which graph illustrates what happens when factor prices decrease?

Which one, if any, of the following events shift the short-run aggregate supply curve but not the long-run aggregate supply curve?