Exam 13: Aggregate Demand and Aggregate Supply Analysis

In the dynamic aggregated demand and aggregate supply model,if AD shifts further than AS

Figure 13-4 -Refer to Figure 13-4.Given the economy is at point A in year 1,what will happen to the unemployment rate in year 2?

Potential GDP refers to the level of

Figure 13-2 -Refer to Figure 13-2.Ceteris paribus,a decrease in the capital stock would be represented by a movement from

In the dynamic aggregated demand and aggregate supply model,inflation occurs if

If the U.S.dollar increases in value relative to other currencies,how does this affect the aggregate demand curve?

What is potential GDP?

In September of 2007,the Federal Reserve Board Open Market Committee voted to lower interest rates for the first time that year.Explain how lower interest rates affect the aggregate demand curve.

The aggregate demand curve shows the relationship between the ________ and ________.

In 2005,Hurricane Katrina destroyed oil and natural gas refining capacity in the Gulf of Mexico which subsequently drove up natural gas,gasoline,and heating oil prices.Three years later,once the refining capacity was restored,these prices came back down.The restoration of refining capacity should

As the recession persisted into 2009,the unemployment rate in the United States rose to ________,the highest rate since the recession of 2001-2002 and the second highest since the Great Depression.

On the long-run aggregate supply curve

Figure 13-2 -Refer to Figure 13-2.Ceteris paribus,an increase in the expected future price level would be represented by a movement from

When the price level falls from 135 to 120,the aggregate level of GDP supplied falls from $140 billion to $125 billion.This ________ relationship represents the ________ relationship between GDP and the price level.

Which of the following is not an assumption made by the dynamic model of aggregate demand and aggregate supply?

Deflation will

Stagflation occurs when inflation ________ and GDP ________.

What does the phrase "Keynesian revolution" refer to?

When the price level in the United States falls relative to the price level of other countries,________ will fall,________ will rise,and ________ will rise.

A rapid increase in the price of oil will tend to