Exam 24: Aggregate Demand and Supply Analysis

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

Explain how not following the Taylor principle leads to unstable inflation

According to aggregate demand and supply analysis,the rising oil prices coupled with the subprime financial crisis in 2007-2008 caused the unemployment rate to ________ and the level of real aggregate output to ________.

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

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

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

Demand shocks are based on the ________ based factors that can shift the aggregate demand curve.

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

Everything else held constant,a decrease in planned investment expenditure ________ aggregate ________.

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

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

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

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

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

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?

Everything else held constant,if workers expect an increase in the price level,________ aggregate supply ________.

Everything else held constant,an increase in government spending ________ aggregate ________.

Assuming the economy is starting at the natural rate of output and everything else held constant,the effect of ________ in aggregate ________ is a rise in both the inflation rate and output in the short-run,but in the long-run the only effect is a rise in the inflation rate.

Autonomous monetary policy ________ real interest rates and ________ aggregate output temporarily.

Figure 24-1 -In Figure 24.1,output levels below Yn will cause the aggregate ________ function to shift to the ________.