Exam 22: Aggregate Demand and Supply Analysis

Everything else held constant,which of the following does not cause aggregate demand to increase?

One way to derive aggregate demand is by looking at its four component parts,which are

The long-run aggregate supply curve shifts to the right when there is

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 long run and ________ in inflation in the long run,everything else held constant.

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

The fact that an economy always returns to the natural rate level of output is known as

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 in the short run and ________ in inflation in the short run.

Suppose the economy is producing at the natural rate of output and the government passes legislation that severely restricts a company's ability to reduce production costs via outsourcing. Everything else held constant,this policy action will cause ________ in the unemployment rate in the short run and ________ in inflation in the short run.

The long-run aggregate supply curve shifts to the right when there is

Explain and demonstrate graphically the effects of a negative supply shock in both the short-run and long-run.

Which of the following increases aggregate supply in the short-run,everything else held constant?

Everything else held constant,when output is ________ the natural rate level,wages will begin to ________,increasing short-run aggregate supply.

The long-run rate of unemployment to which an economy always gravitates is the

This theory views shocks to tastes (workers' willingness to work,for example)and technology (productivity)as the major driving forces behind short-run fluctuations in the business cycle because these shocks lead to substantial short-run fluctuations in the natural rate of output.

Everything else held constant,a decrease in net exports ________ aggregate ________.

A theory of aggregate economic fluctuations called real business cycle theory holds that

The aggregate supply curve shows the relationship between

Everything else held constant,a decrease in government spending ________ aggregate ________.

By looking at aggregate demand via its component parts,we can conclude that the aggregate demand curve is downward sloping because

Everything else held constant,an increase in planned investment expenditure ________ aggregate ________.