Exam 24: Aggregate Demand and Supply Analysis

Prior to the financial crisis in 2007 -2008,the Chinese economy was growing at ________ per year.

Everything else held constant,contractionary monetary policies will cause ________.

Aggregate demand and supply analysis can be used ________.

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

The short-run aggregate supply curve is upward sloping because in the short run,costs of many factors that go into producing goods and services are ________,meaning that the price for a unit of output will ________ relative to input prices and the profit per unit will rise.

The aggregate supply curve is ________.

Everything else held constant,an increase in financial frictions ________ aggregate ________.

In deriving the aggregate demand curve a ________ in the price level leads to ________ in the real money supply because the nominal quantity of dollars can purchase ________ goods and services.

The short-run aggregate supply curve shifts to the right when ________.

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

Everything else held constant,a decrease in the cost of production ________ aggregate ________.

Suppose the Canadian economy is operating at potential output.A negative supply shock that is accommodated by an open market purchase by the Bank of Canada will cause ________ in real GDP in the long run and ________ in the aggregate price level in the long run,everything else held constant.

Figure 24-1 -In Figure 24.1 the shift of the aggregate supply curve from AS1 to AS2 and the following shift back to AS1 is called ________.

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 the inflation rate in the short run,everything else held constant.

The increase in energy prices that occurred in 2007 - 2008 led to a ________ in the ________ aggregate supply curve.

Everything else held constant,aggregate demand increases when ________.

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

Some unemployment is always present due to the ________ and ________ components,which are greater than zero.

According to aggregate demand and supply analysis,the U.S.involvement in the Vietnam War had the effect of ________.

To manage the large export losses resulting from the U.S financial crisis,China implemented ________ policy,amounting to ________ percent of Chinese GDP.