\[\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Price } \\ \text { level } \end{array} & \begin{array} { c } \text { Aggregate } \\ \text { demand } \\ \text { (trillions of } \\ \text { 2005 dollars) } \end{array} & \begin{array} { c } \text { Short-run } \\ \text { aggregate } \\ \text { supply } \\ \text { (trillions of } \\ \text { 2005 dollars) } \end{array} & \begin{array} { c } \text { Long-run } \\ \text { aggregate } \\ \text { supply } \\ \text { (trillions of } \\ \text { 2005 dollars) } \end{array} \\ \hline 100 & 13 & 9 & 10 \\ \hline 105 & 12 & 10 & 10 \\ \hline 110 & 11 & 11 & 10 \\ \hline 115 & 10 & 13 & 10 \\ \hline \end{array}\] -Using the data in the above table,in the short-run macroeconomic equilibrium,the price level is ________ and the level of real GDP is ________.

A) 105; $10 trillion B) 110; $10 trillion C) 110; $11 trillion D) 115; $10 trillion A) 105; $10 trillion B) 110; $10 trillion C) 110; $11 trillion D) 115; $10 trillion

\[\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Price } \\ \text { level } \end{array} & \begin{array} { c } \text { Aggregate } \\ \text { demand } \\ \text { (trillions of } \\ \text { 2005 dollars) } \end{array} & \begin{array} { c } \text { Short-run } \\ \text { aggregate } \\ \text { supply } \\ \text { (trillions of } \\ \text { 2005 dollars) } \end{array} & \begin{array} { c } \text { Long-run } \\ \text { aggregate } \\ \text { supply } \\ \text { (trillions of } \\ \text { 2005 dollars) } \end{array} \\ \hline 130 & 8 & 12 & 10 \\ \hline 120 & 9 & 11 & 10 \\ \hline 110 & 10 & 10 & 10 \\ \hline 100 & 11 & 9 & 10 \\ \hline 90 & 12 & 8 & 10 \\ \hline \end{array}\] -The data in the above table indicate that when the price level is 100,

A) inventories fall and the price level rises. B) the economy is in a long-run macroeconomic equilibrium. C) inventories rise and the price level falls. D) the unemployment rate is at its equilibrium level. A) inventories fall and the price level rises. B) the economy is in a long-run macroeconomic equilibrium. C) inventories rise and the price level falls. D) the unemployment rate is at its equilibrium level.

\[\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Price } \\ \text { level } \end{array} & \begin{array} { c } \text { Aggregate } \\ \text { demand } \\ \text { (trillions of } \\ \text { 2005 dollars) } \end{array} & \begin{array} { c } \text { Short-run } \\ \text { aggregate } \\ \text { supply } \\ \text { (trillions of } \\ \text { 2005 dollars) } \end{array} & \begin{array} { c } \text { Long-run } \\ \text { aggregate } \\ \text { supply } \\ \text { (trillions of } \\ \text { 2005 dollars) } \end{array} \\ \hline 140 & 4 & 8 & 7 \\ \hline 130 & 5 & 7 & 7 \\ \hline 120 & 6 & 6 & 7 \\ \hline 110 & 7 & 5 & 7 \\ \hline 100 & 8 & 4 & 7 \\ \hline \end{array}\] -The data in the above table show that when the price level is 120,

A) the unemployment rate is below its natural rate. B) the unemployment rate is above its natural rate. C) money wages rates will rise in the future. D) the long-run aggregate supply curve will shift leftward in the future. A) the unemployment rate is below its natural rate. B) the unemployment rate is above its natural rate. C) money wages rates will rise in the future. D) the long-run aggregate supply curve will shift leftward in the future.

Exam 10: Aggregate Supply and Aggregate Demand

An increase in the money wage rate shifts the short-run aggregate supply curve ; an increase in technology shifts the long-run aggregate supply curve .

(Multiple Choice)

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Question 41

China is one of the world's largest exporters.As the world's economies slipped into a worldwide recession in 2008,there was a China's aggregate demand curve as China's exports .

(Multiple Choice)

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Question 42

According to the intertemporal substitution effect,a fall in the price level will

(Multiple Choice)

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Question 43

The U.S.aggregate demand curve shifts leftward if

(Multiple Choice)

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Question 44

-In the above figure,the economy is at point A and the money wage rate falls by 10 percent.If the price level is constant,firms will be willing to supply output equal to

(Multiple Choice)

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Question 45

-In the above figure,which movement illustrates the impact of a constant price level and a rising money wage rate?

(Multiple Choice)

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Question 46

In the short run,a supply shock that shifts the short-run aggregate supply curve leftward real GDP and the price level.

(Multiple Choice)

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Question 47

Price level Aggregate demand (trillions of 2005 dollars) Short-run aggregate supply (trillions of 2005 dollars) Long-run aggregate supply (trillions of 2005 dollars) 100 13 9 10 105 12 10 10 110 11 11 10 115 10 13 10 -Using the data in the above table,in the short-run macroeconomic equilibrium,the price level is and the level of real GDP is .

(Multiple Choice)

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Question 48

In the short run,a supply shock that shifts the short-run aggregate supply curve leftward raises the price level and increases real GDP.

(True/False)

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Question 49

A change in ________ results in a movement along the short-run aggregate supply curve but does not shift the short-run aggregate supply curve.

(Multiple Choice)

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Question 50

Moving along a short-run aggregate supply curve,resource prices ,the money rate wage ,and potential GDP .

(Multiple Choice)

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Question 51

A change in the capital stock the short-run aggregate supply curve and the long-run aggregate supply curve.

(Multiple Choice)

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Question 52

The intertemporal substitution effect refers to substitution of

(Multiple Choice)

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Question 53

If the full-employment quantity of labor increases,then the

(Multiple Choice)

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Question 54

Price level Aggregate demand (trillions of 2005 dollars) Short-run aggregate supply (trillions of 2005 dollars) Long-run aggregate supply (trillions of 2005 dollars) 130 8 12 10 120 9 11 10 110 10 10 10 100 11 9 10 90 12 8 10 -The data in the above table indicate that when the price level is 100,

(Multiple Choice)

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Question 55

The short-run aggregate supply curve shifts when I. the full-employment quantity of capital changes. II) technology advances.

(Multiple Choice)

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Question 56

The U.S.exchange rate rises.As a result,there is a

(Multiple Choice)

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Question 57

Price level Aggregate demand (trillions of 2005 dollars) Short-run aggregate supply (trillions of 2005 dollars) Long-run aggregate supply (trillions of 2005 dollars) 140 4 8 7 130 5 7 7 120 6 6 7 110 7 5 7 100 8 4 7 -The data in the above table show that when the price level is 120,

(Multiple Choice)

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Question 58

If the money prices of resources changes,the LAS curve shifts.

(True/False)

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Question 59

A decrease in the money wage rate

(Multiple Choice)

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Question 60

An increase in the money wage rate shifts the short-run aggregate supply curve ; an increase in technology shifts the long-run aggregate supply curve .

China is one of the world's largest exporters.As the world's economies slipped into a worldwide recession in 2008,there was a China's aggregate demand curve as China's exports .

According to the intertemporal substitution effect,a fall in the price level will

The U.S.aggregate demand curve shifts leftward if

-In the above figure,the economy is at point A and the money wage rate falls by 10 percent.If the price level is constant,firms will be willing to supply output equal to

-In the above figure,which movement illustrates the impact of a constant price level and a rising money wage rate?

In the short run,a supply shock that shifts the short-run aggregate supply curve leftward real GDP and the price level.

In the short run,a supply shock that shifts the short-run aggregate supply curve leftward raises the price level and increases real GDP.

A change in ________ results in a movement along the short-run aggregate supply curve but does not shift the short-run aggregate supply curve.

Moving along a short-run aggregate supply curve,resource prices ,the money rate wage ,and potential GDP .

A change in the capital stock the short-run aggregate supply curve and the long-run aggregate supply curve.

The intertemporal substitution effect refers to substitution of

If the full-employment quantity of labor increases,then the

Price level Aggregate demand (trillions of 2005 dollars) Short-run aggregate supply (trillions of 2005 dollars) Long-run aggregate supply (trillions of 2005 dollars) 130 8 12 10 120 9 11 10 110 10 10 10 100 11 9 10 90 12 8 10 -The data in the above table indicate that when the price level is 100,

The short-run aggregate supply curve shifts when I. the full-employment quantity of capital changes. II) technology advances.

The U.S.exchange rate rises.As a result,there is a

Price level Aggregate demand (trillions of 2005 dollars) Short-run aggregate supply (trillions of 2005 dollars) Long-run aggregate supply (trillions of 2005 dollars) 140 4 8 7 130 5 7 7 120 6 6 7 110 7 5 7 100 8 4 7 -The data in the above table show that when the price level is 120,

If the money prices of resources changes,the LAS curve shifts.

A decrease in the money wage rate

What Is Economics

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

Exam 10: Aggregate Supply and Aggregate Demand

An increase in the money wage rate shifts the short-run aggregate supply curve ________; an increase in technology shifts the long-run aggregate supply curve ________.

China is one of the world's largest exporters.As the world's economies slipped into a worldwide recession in 2008,there was a ________ China's aggregate demand curve as China's exports ________.

According to the intertemporal substitution effect,a fall in the price level will

The U.S.aggregate demand curve shifts leftward if

-In the above figure,the economy is at point A and the money wage rate falls by 10 percent.If the price level is constant,firms will be willing to supply output equal to

-In the above figure,which movement illustrates the impact of a constant price level and a rising money wage rate?

In the short run,a supply shock that shifts the short-run aggregate supply curve leftward ________ real GDP and ________ the price level.

In the short run,a supply shock that shifts the short-run aggregate supply curve leftward raises the price level and increases real GDP.

A change in ________ results in a movement along the short-run aggregate supply curve but does not shift the short-run aggregate supply curve.

Moving along a short-run aggregate supply curve,resource prices ________,the money rate wage ________,and potential GDP ________.

A change in the capital stock ________ the short-run aggregate supply curve and ________ the long-run aggregate supply curve.

The intertemporal substitution effect refers to substitution of

If the full-employment quantity of labor increases,then the

Price level Aggregate demand (trillions of 2005 dollars) Short-run aggregate supply (trillions of 2005 dollars) Long-run aggregate supply (trillions of 2005 dollars) 130 8 12 10 120 9 11 10 110 10 10 10 100 11 9 10 90 12 8 10 -The data in the above table indicate that when the price level is 100,

The short-run aggregate supply curve shifts when I. the full-employment quantity of capital changes. II) technology advances.

The U.S.exchange rate rises.As a result,there is a

Price level Aggregate demand (trillions of 2005 dollars) Short-run aggregate supply (trillions of 2005 dollars) Long-run aggregate supply (trillions of 2005 dollars) 140 4 8 7 130 5 7 7 120 6 6 7 110 7 5 7 100 8 4 7 -The data in the above table show that when the price level is 120,

If the money prices of resources changes,the LAS curve shifts.

A decrease in the money wage rate

What Is Economics

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

An increase in the money wage rate shifts the short-run aggregate supply curve ; an increase in technology shifts the long-run aggregate supply curve .

China is one of the world's largest exporters.As the world's economies slipped into a worldwide recession in 2008,there was a China's aggregate demand curve as China's exports .

In the short run,a supply shock that shifts the short-run aggregate supply curve leftward real GDP and the price level.

Moving along a short-run aggregate supply curve,resource prices ,the money rate wage ,and potential GDP .

A change in the capital stock the short-run aggregate supply curve and the long-run aggregate supply curve.