Exam 22: Aggregate Demand and Supply Analysis

Which of the followings does not shift the short-run aggregate supply curve?

Suppose the economy is producing at the natural rate of output. An open market sale of bonds by the Fed will cause ________ in real GDP in the long run and ________ in inflation in the long run,everything else held constant.

Suppose the economy is producing at the natural rate of output. A decrease in consumer and business confidence will cause ________ in real GDP in the short run and ________ in inflation in the short run,everything else held constant.

The total quantity of an economy's final goods and services demanded at different inflation rates is

Suppose the U.S.economy is operating at potential output. A negative supply shock that is accommodated by an open market purchase by the Federal Reserve will cause ________ in real GDP in the long run and ________ in inflation in the long run,everything else held constant.

Everything else held constant,an increase in the cost of production ________ aggregate ________.

Suppose the U.S.economy is producing at the natural rate of output. An appreciation of the U.S.dollar will cause ________ in real GDP in the short run and ________ in inflation in the short run,everything else held constant.(Assume the appreciation causes no effects in the supply side of the economy.)

The price of a barrel of oil doubled between 2007 and the middle of 2008.To make matters worse,a financial crisis hit the U.S.economy starting in August of 2007.Which of the following is true of the Chinese experience?

The Phillips curve indicates that when the labor market is ________,production costs will ________ and aggregate supply decreases.

As of 2009,China's economy had recovered from the global recession that began in 2008.Use aggregate demand and aggregate supply analysis to explain why,and to explain the likely consequences for China of an increase in the growth rate of the global economy.

________ flexible wages and prices imply that the short-run aggregate supply curve is ________.

Everything else held constant,aggregate demand increases when

Everything else held constant,an increase in net exports ________ aggregate ________.

A decrease in the availability of raw materials that increases the price level is called a ________ shock

Suppose the economy is producing at the natural rate of output.Assuming a fixed natural rate of output and everything else held constant,the development of a new,more productive technology will cause ________ in the unemployment rate and ________ in the inflation in the long run.

According to aggregate demand and supply analysis,the negative demand shock of 2000-2004 had the effect of

Everything else held constant,an autonomous monetary policy tightening ________ aggregate ________.

According to aggregate demand and supply analysis,the negative supply shocks of 1973-1975 and 1978-1980 had the effect of

According to aggregate demand and supply analysis,the favorable supply shock of 1995-1999 had the effect of

Everything else held constant,when actual output exceeds the natural rate of output ________ aggregate supply ________.