Exam 22: Aggregate Demand and Aggregate Supply

Why do wage increases along with increases of other input prices impact the short-run aggregate supply but not the long-run aggregate supply,unless they reflect permanent reductions in the supply of those inputs?

In the long run,a decrease in the price level:

Demand-pull inflation is caused by:

Which of the following is true of the long-run aggregate supply curve?

A decrease in the price level will:

Describe the difference between a microeconomic demand curve and an aggregate demand curve.

If consumption in the United States was 68 percent of GDP,investment was 19 percent,government purchases were 13 percent,exports were 14 percent,and imports were 14 percent,net exports were equal to ____ percent of GDP.

Explain why the short-run supply curve is not vertical,but the long-run aggregate supply curve is vertical.

If there is currently an inflationary gap,an increase in aggregate demand will make the inflationary gap smaller,but a decrease in aggregate demand would make the inflationary gap larger.

Which of the following will decrease aggregate demand?

If there were no real wealth or interest rate effect,the aggregate demand curve would still be downward sloping.

Which of the following would lead to stagflation?

Holding all other things constant,when the price level rises,interest rates:

If net exports are negative,then aggregate demand will be less than the sum of consumption,investment,and government purchases.

The notion that "supply creates its own demand" is known as:

An increase in disposable income would tend to shift aggregate demand right.

According to the interest rate effect,as the price level increases,households and firms' holdings of money ____,interest rates ____,investments ____,and the quantity RGDP demanded ____.

Which of the following increases U.S.aggregate demand?

Which of the following does not increase U.S.aggregate demand?

For individuals who are holding money or fixed dollar value assets,inflation has the effect of: