Exam 13: Business Fluctuations

When the United States experienced its first oil shock,employment shifted from Houston to Detroit.

During the Great Depression,the long-run aggregate supply curve:

Compare two economies,one that is highly agricultural and another that is highly manufacturing-based.Discuss what types of shocks might be relevant to each of these economies.

If prices are perfectly flexible,the economy will always be growing:

Explain why sticky wages tend to amplify negative productivity shocks.

When inflation is 4% and the real GDP growth rate is 2%,what is the spending growth rate?

In the graph of the AD-AS model,what is measured on the horizontal axis?

In the AD-AS model,a positive real shock drives up both inflation and the growth rate.

The Great Depression was due primarily to the:

On a given aggregate demand curve,if the rate of spending growth is 10% and the growth rate of the money supply is 2%,then the velocity of money must be growing at:

Since people will always come to expect the actual inflation rate in the long run,the expected inflation rate is found graphically where the:

The short-run aggregate supply curve shows the _____ relationship between the inflation rate and real growth during the period when prices and wages are _____.

A recession is a significant,widespread decline in nominal income and employment.

A slower money growth rate represents a positive AD shock.

In the equation $\vec { M } + \vec { v } = \vec { P } + \vec { Y } _ { R }$ ,what does $\vec { M }$ stand for?

Why is the long-run aggregate supply curve vertical in the AD-AS model?

In the AD-AS model,an unexpected decrease in the growth rate of the money supply causes:

The Black Plague is an example of a real shock.

Greater growth of government spending represents a negative AD shock.

Other things held constant,an increase in the velocity of money will cause the aggregate demand curve to: