Exam 23: Aggregate Demand and Supply Analysis

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

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

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 ________.

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 an appropriate description of the mechanism that would have ensued?

Explain through the component parts of aggregate demand why the aggregate demand curve slopes down with respect to the price level. Be sure to discuss two channels through which changes in prices affect demand.

Because shifts in aggregate demand are not viewed as being particularly important to aggregate output fluctuations, they do not see much need for activist policy to eliminate high unemployment. "They" refers to proponents of ________.

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.

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

The aggregate demand curve is downward sloping because a decrease in the price level increases the ________ money supply which ________ interest rates and increases the equilibrium level of aggregate output, everything else held constant.

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

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

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

Consider the following aggregate demand curve Y = 22-1p and a short-run aggregate supply curve given by: p = 4 + 3(Y - 10). Find the equilibrium output and inflation rate.

In deriving the aggregate demand curve a ________ price level ________ the money supply in real terms, raises interest rates, and ________ the equilibrium level of aggregate output.

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

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

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, aggregate demand increases when ________.

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

The expectations-augmented Phillips curve concludes that ________.