Exam 24: Aggregate Demand and Supply Analysis

What are the factors that can shift the aggregate demand curve to the right?

The aggregate supply curve shows the relationship between ________.

What is the shape of the long-run aggregate supply curve? Why?

A ________supply shock ________ prices will cause the real interest rate to ________ in the short run.

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 United Kingdom's experience?

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

A favourable supply shock causes ________ to ________.

Figure 24-1 -In Figure 24.1 above,at point 2,the shift of the aggregate supply curve from AS1 to AS2 is a result of ________ wages that ________ production cost.

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

Everything else held constant,aggregate demand increases when ________.

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 the inflation rate in the short run.

Everything else held constant,a change in workers' expectations about the inflation rate will cause ________ to change.

Explain why the short-run aggregate supply curve has a positive slope.

The total quantity of final goods and services offered for sale at different price levels is ________.

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

Enumerate the four implications for aggregate output from algebraic expression of the aggregate demand curve.

During the 2007-2008 financial crisis,China's economic growth slowed from over ________ percent in the first half of 2008 to under _____ percent in the second half.

The long-run aggregate supply curve is a vertical line passing through ________.

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

The positively sloped short-run aggregate supply curve reflects the assumption that labour prices are ________.