Exam 19: Aggregate Supply and Aggregate Demand

List three changes that lead to a shift of the aggregate supply curve.Discuss why each change shifts the aggregate supply curve and in which direction the curve shifts.

If potential GDP increases,then the

The slope of the aggregate supply curve shows that the ________ the price level,the ________.

A rise in the price level produces ________ the potential GDP line.

If there is a rise in the price level,there is ________ in the quantity of real GDP supplied and a movement ________ along the AS curve.

All of the following shift the aggregate demand curve to the right EXCEPT

Which of the following statements is correct?

When the domestic price level increases,exports decrease and imports increase.Other things the same,this change is illustrated by a

Which of the following changes aggregate supply and shifts the AS curve? I.a change in the price of a major resource Ii.increases in the amount of capital Iii.a change in the money income of consumers

If the price level increases,there is ________ the AD curve and the quantity of real GDP demanded ________.

If taxes are cut,there is

Potential GDP

If the Fed increases the quantity of money,then

If the price of oil rises,the

If the quantity of real GDP demanded is greater than the quantity of real GDP supplied,then

What factors can start a cost-push inflation? What must the Fed's response be for the inflation to continue?

The aggregate supply curve shifts

A tax cut ________ aggregate demand and ________.

A rise in the money wage rate shifts the

If real GDP is greater than potential GDP,then to restore equilibrium,________ and the price level ________.