Exam 24: Aggregate Demand and Aggregate Supply Analysis

Spending on the war in Afghanistan is essentially categorized as government purchases.How do increases in spending on the war in Afghanistan affect the aggregate demand curve?

According to Marx,which of the following factors of production did not contribute anything of value to production?

Figure 24-1 -Refer to Figure 24-1.Ceteris paribus,an increase in households' expectations of their future income would be represented by a movement from

Figure 24-1 -Refer to Figure 24-1.Ceteris paribus,an increase in the price level would be represented by a movement from

Which of the following will shift the aggregate demand curve to the right,ceteris paribus?

A negative supply shock in the short run causes

When potential GDP increases,long-run aggregate supply also increases.

On the long-run aggregate supply curve,

When the price level in the United States falls relative to the price level of other countries,________ will fall,________ will rise,and ________ will rise.

If workers and firms have rational expectations,they form their expectations using

Potential GDP refers to the level of

The long-run adjustment to a negative supply shock results in

Figure 24-2 -Refer to Figure 24-2.Ceteris paribus,an increase in the price level would be represented by a movement from

Figure 24-2 -Refer to Figure 24-2.Ceteris paribus,an increase in the expected future price level would be represented by a movement from

If the U.S.dollar decreases in value relative to other currencies,how does this affect the aggregate demand curve?

Figure 24-2 -Refer to Figure 24-2.Ceteris paribus,an increase in workers and firms adjusting to having previously overestimated the price level would be represented by a movement from

A supply shock causes the long-run aggregate supply curve to shift left,decreasing the price level.

Because of the slope of the aggregate demand curve,we can say that

Suppose there has been an increase in investment.As a result,real GDP will ________ in the short run,and ________ in the long run.

In the dynamic aggregate demand and aggregate supply model,what is the result of aggregate demand increasing slower than potential real GDP?