Exam 10: Aggregate Supply and Aggregate Demand

What are the components of fiscal policy? Explain how fiscal policy affects aggregate demand.

In the short-run

When the quantity of capital increases, then the

-An inflationary gap means that the level of real GDP at the short-run macroeconomic equilibrium

-Use the figure above to answer this question. At a price level of 110

An increase in foreign incomes

In the short run, the equilibrium level of real GDP

Which of the following changes while moving along the aggregate demand curve?

The long-run aggregate supply curve illustrates the

Long-run aggregate supply will decrease for all of the following reasons EXCEPT

In recent years, Japan's capital stock has increased by about 6 percent from one year to the next. As a result, we would expect

-The curve labeled A in the above figure will shift rightward when

A short-run macroeconomic equilibrium occurs

In 2008, Japan's government approved a $1 trillion fiscal stimulus plan comprised of both tax cuts and government expenditure increases. As a result

The short-run aggregate supply curve shifts leftward when the

What is the difference between a recessionary gap and an inflationary gap?

-In the above figure, the short-run aggregate supply curve is SAS1. If the money wage rate increases, there is

When the price level rises, the long-run aggregate supply curve ________.

-The data in the above table indicate that when the price level is 100

-In the above figure, at the price level of 140 and real GDP of