Exam 11: Aggregate Supply and Demand

Keynesian policy levers include:

Which of the following suggests that lower average prices stimulate more borrowing?

According to the real balances effect,if the price level rises then the real value of savings increases and individuals will buy more output.

The Classical approach dominated economic policy during:

According to the text,which of the following is a determinant of macroeconomic performance?

The cornerstone of Classical theory is constant wages and prices.

According to supply-side theories,an increase in supply incentives shifts the aggregate:

Table 11.1-Aggregate supply and demand -In Table 11.1,at what price level does macro equilibrium occur?

According to the foreign trade effect,if the U.S.price level rises then U.S.exports are more expensive for foreigners to buy so the level of real GDP decreases.