FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 12: Aggregate Demand and Aggregate Supply

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 61

Multiple Choice

Review LaterAdd Note

Review Later

A) A
B) B
C) C
D) D

Correct Answer

verified

Show Answer

Question 62

Multiple Choice

Review LaterAdd Note

Review Later

A) a higher price level.
B) an expansion of real output and a stable price level.
C) an expansion of real output and a higher price level.
D) a decline in real output and a stable price level.

Correct Answer

verified

Show Answer

Question 63

Essay

Review LaterAdd Note

How will a change in productivity increase or decrease aggregate supply?

An increase in the price level, other things equal, will shift the

The determinants of aggregate supply

The real-balances effect indicates that inflation makes the public feel wealthier and they therefore spend more out of their current incomes.

Real Domestic Output Real Domestic Output Demanded (in Billions) Price Level (Index Value) Supplied $500 350 $3,500 1,000 300 3,000 1,500 250 2,500 2,000 200 2,000 2,500 150 1,500 3,000 100 1,000 The accompanying table shows the aggregate demand and aggregate supply schedule for a Hypothetical economy. If the quantity of real domestic output demanded decreased by $500 and The quantity of real domestic output supplied increased by $500 at each price level, the new Equilibrium price level and quantity of real domestic output would be

$\begin{array} { | c | c | c | c | c | c | c | } \hline \text { Price Level } & C & I _ { g } & G & X & M & \text { Real GDP } \\\hline 128 & \$ 18 & \$ 2 & \$ 3 & \$ 1 & \$ 5 & \\\hline 125 & 20 & 4 & 3 & 2 & 4 & \\\hline 122 & 22 & 6 & 3 & 3 & 3 & \\\hline 119 & 24 & 8 & 3 & 4 & 2 & \\\hline 116 & 26 & 10 & 3 & 5 & 1 & \\\hline\end{array}$ In the accompanying table for a particular country, C is consumption expenditures, $I _ { g }$ is gross Investment expenditures, G is government expenditures, X is exports, and M is imports. All ?gures Are in billions of dollars. If the amounts of GDP supplied at the price levels shown (in descending Order) are $27, $25, $22, $18, and $13, the equilibrium price level will be

Cost-push inflation is depicted as a rightward shift of the aggregate demand curve along an upsloping aggregate supply curve.

The foreign purchases effect

The upward slope of the short-run aggregate supply curve is based on the assumption that

If the U.S. dollar appreciates in value relative to foreign currencies, then this will

Cost-push inflation can be described as a rightward shift of the aggregate supply curve.

If the price level increases in the United States relative to foreign countries, then American consumers will purchase more foreign goods and fewer U.S. goods. This statement describes

If at a particular price level, real output from producers is greater than real output desired by purchasers, then there will be a general

$\begin{array} { | c | c | c | c | c | c | c | } \hline \text { Price Level } & C & I _ { g } & G & X & M & \text { Real GDP } \\\hline 128 & \$ 18 & \$ 2 & \$ 3 & \$ 1 & \$ 5 & \\\hline 125 & 20 & 4 & 3 & 2 & 4 & \\\hline 122 & 22 & 6 & 3 & 3 & 3 & \\\hline 119 & 24 & 8 & 3 & 4 & 2 & \\\hline 116 & 26 & 10 & 3 & 5 & 1 & \\\hline\end{array}$ In the accompanying table for a particular country, C is consumption expenditures, $I _ { g }$ is gross Investment expenditures, G is government expenditures, X is exports, and M is imports. All ?gures Are in billions of dollars. If the amounts of GDP supplied at the price levels shown (in descending Order) are $45, $43, $40, $37, and $31, the equilibrium level of real GDP will be

When national income in other nations decreases, aggregate demand in our economy

A decrease in per-unit production costs will shift the aggregate supply curve leftward.