Exam 8: Aggregate Demand and Aggregate Supply

Which of the following policies might create demand-pull inflation

-Referring to the Aggregate Demand - Aggregate Supply diagram in Figure 8.1, which box should be filled with the label RGDP* for the macroeconomic equilibrium level of Real Gross Domestic Product?

When trying to move the economy out of recession, the Republican Party is more likely than the Democratic Party to focus on

When domestic prices rise

A strengthening of the dollar will immediately shift

Under the George W. Bush Administration, federal income taxes were cut twice and boosted defense spending substantially. Taken together these actions are likely to have

If a supply-side economist were to make a suggestion to stimulate economic activity which of the following policies would she NOT suggest

The rationale for interest rates determining AD is with lower interest rates

Suppose the U.S. was to experience a series of terrorists' attacks aimed at the electricity grid. This would likely

A decrease in government spending will immediately shift

A decrease in confidence will cause

-In the Aggregate Demand - Aggregate Supply diagram in Figure 8.1, Box 5 should be filled with

-Referring to the Aggregate Demand - Aggregate Supply diagram in Figure 8.1, which box should be filled with the label PI for "price index?"

Use the Aggregate Supply - Aggregate Demand model to determine which of the following will lead to higher aggregate output

An increase in interest rates will immediately shift

A decrease in input prices will shift

An increase in worker productivity will

The notion of the "interest rate effect" was one of the basic reasons behind the downward sloping nature of the

Policies focused on giving people more money in their unemployment checks would be considered

Which of the following might create cost-push inflation