Exam 13: Business Fluctuations

The long-run aggregate supply curve is represented by a vertical line at the Solow growth rate because:

From an initial equilibrium in the AD-AS model,an increase in consumption growth will initially cause inflation:

Which of the following would cause the aggregate demand curve to shift to the right?

The Solow growth rate is the economy's:

A positive real shock to the economy will result in an increase in the growth rate of output and a decrease in the rate of inflation.

Holding everything else constant,an increase in the growth rate of the money supply will cause the aggregate demand curve to:

When consumers suddenly become more pessimistic about the economy,a negative aggregate demand shock shifts the:

If prices are completely flexible,then a positive aggregate demand shock will lead to:

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

Many economists blame the severity of the Great Depression on:

If a baker observes an increase in demand for bread,should the baker increase output or raise prices?

At all points along the long-run aggregate supply curve,prices and wages are assumed to be perfectly flexible.

Which of the following occurs in the long run?

The costs of changing prices are called:

The long-run aggregate supply curve shows that inflation has no impact on real long-term growth.

By 1932,the real growth rate of the U.S.economy was:

An increase in spending growth causes a _____ the aggregate demand curve.

The long-run aggregate supply curve is:

A temporary decrease in aggregate demand:

In the AD-AS model with a long-run potential growth rate of 2%,a 6 percentage point increase in the money supply growth rate will cause the economy's growth rate to be _____ in the long run.