Exam 10: Aggregate Supply and Aggregate Demand

Which of the following shifts the aggregate demand curve rightward?

How do changes in the money wage rate affect the LAS and SAS curves? Explain your answer.

Compare the policy prescriptions of Keynesian, Classical, and Monetarist economists.

-In the above figure, the movement from point B to point A might be the result of

Business cycles are the result of

When the prices of U.S.-produced goods rise and the price of foreign-produced goods do not change, the result is

-In the above figure, which movement illustrates the impact of the price level and money wage rate falling at the same rate?

In November, 2012, U.S. lawmakers were faced with a "fiscal cliff:" if they did not agree on how to reduce the federal deficit, automatic tax increases and drastic cuts in government spending would take effect. What would happen if the fiscal cliff occurred?

Real GDP supplied -The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. The short-run macroeconomic equilibrium is a price level of ________ and a real GDP of ________.

In the first half of 2008, food and energy costs in the United States increased. At the same time, the financial crisis slowed production as firms predicted lower profits. A ________ macroeconomist would support the use of ________.

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 raises the price level and decreases real GDP.

An economy currently has an inflationary gap. An increase in the money wage rate will ________ the inflationary gap and ________ the price level.

Which of the following statements is FALSE?

An increase in the quantity of money shifts the aggregate demand curve rightward.

-Suppose the economy is at point B. If a recession in another country decreases exports, to what point might economy move in the short run?

Suppose the exchange rate falls from $1.20 Canadian per U.S. dollar to $1.10 Canadian per U.S. dollar. U.S. exports will ________, U.S. imports will ________, and U.S. aggregate demand will ________.

Moving along the aggregate demand curve, a decrease in the quantity of real GDP demanded is a result of

________ economists believe that active help from fiscal and monetary policy is needed to insure that the economy is operating at full employment.

-In the above figure, if aggregate demand does not change, the long-run equilibrium will be at the price level of ________ and real GDP of ________.