Question 1

Figure 33-2  ​
-Refer to Figure 33-2. If the economy is in long-run equilibrium, then an adverse shift in short-run aggregate supply would move the economy from

Accepted Answer

A)  S to T.
B)  U to V.
C)  T to S.
D)  V to U.E) A) and D)
F) B) and C)

Question 2

Changes in what four variables will shift the long run aggregate supply curve?

Accepted Answer

Labor, capital, natu...

Question 3

In the aggregate demand and aggregate supply model, the point where the aggregate demand curve crosses the long run aggregate supply curve, and the expected price level equals the actual price level, is known as what?

Accepted Answer

Long run e...

Question 4

Which of the following is not a determinant of the long-run level of real GDP?

Accepted Answer

A)  The price level
B)  The amount of capital used by firms
C)  Available stock of human capital
D)  Available technologyE) B) and C)
F) A) and D)

Question 5

We can explain continued increases in both output and the price level by supposing that only aggregate demand shifted right over time.

Accepted Answer

A) True 
 B)False

Question 6

Economic expansions in Europe and China would cause the U.S. price level

Accepted Answer

A)  and real GDP to rise.
B)  and real GDP to fall.
C)  to rise and real GDP to fall.
D)  to fall and real GDP to rise.E) B) and C)
F) A) and C)

Question 7

The primary purpose of the aggregate demand and aggregate supply model is to demonstrate the classical dichotomy.

Accepted Answer

A) True 
 B)False

Question 8

Suppose that a decrease in the demand for goods and services pushes the economy into recession. What happens to the price level? If the government does nothing, what ensures that the economy still eventually gets back to the natural rate of output?

Accepted Answer

A decrease in aggregate demand causes th...

Question 9

An increase in the money supply causes output to rise in the long run.

Accepted Answer

A) True 
 B)False

Exam 33: Aggregate Demand and Aggregate Supply

Which of the following is not a determinant of the long-run level of real GDP?

Correct Answer
verified

In the aggregate demand and aggregate supply model, the point where the aggregate demand curve crosses the long run aggregate supply curve, and the expected price level equals the actual price level, is known as what?

Correct Answer
verified
Long run e...
View Answer

The primary purpose of the aggregate demand and aggregate supply model is to demonstrate the classical dichotomy.

Correct Answer
verified

An increase in the money supply causes output to rise in the long run.

Correct Answer
verified

Figure 33-2 -Refer to Figure 33-2. If the economy is in long-run equilibrium, then an adverse shift in short-run aggregate supply would move the economy from

Correct Answer
verified

We can explain continued increases in both output and the price level by supposing that only aggregate demand shifted right over time.

Correct Answer
verified

Economic expansions in Europe and China would cause the U.S. price level

Correct Answer
verified

Suppose that a decrease in the demand for goods and services pushes the economy into recession. What happens to the price level? If the government does nothing, what ensures that the economy still eventually gets back to the natural rate of output?

Correct Answer
verified
A decrease in aggregate demand causes th...
View Answer

Changes in what four variables will shift the long run aggregate supply curve?

Correct Answer
verified
Labor, capital, natu...
View Answer

Exam 33: Aggregate Demand and Aggregate Supply

Which of the following is not a determinant of the long-run level of real GDP?

Correct AnswerverifiedShow Answer

In the aggregate demand and aggregate supply model, the point where the aggregate demand curve crosses the long run aggregate supply curve, and the expected price level equals the actual price level, is known as what?

Correct AnswerverifiedLong run e...View AnswerShow Answer

The primary purpose of the aggregate demand and aggregate supply model is to demonstrate the classical dichotomy.

Correct AnswerverifiedShow Answer

An increase in the money supply causes output to rise in the long run.

Correct AnswerverifiedShow Answer

Figure 33-2 ​ -Refer to Figure 33-2. If the economy is in long-run equilibrium, then an adverse shift in short-run aggregate supply would move the economy from

Correct AnswerverifiedShow Answer

We can explain continued increases in both output and the price level by supposing that only aggregate demand shifted right over time.

Correct AnswerverifiedShow Answer

Economic expansions in Europe and China would cause the U.S. price level

Correct AnswerverifiedShow Answer

Suppose that a decrease in the demand for goods and services pushes the economy into recession. What happens to the price level? If the government does nothing, what ensures that the economy still eventually gets back to the natural rate of output?

Correct AnswerverifiedA decrease in aggregate demand causes th...View AnswerShow Answer

Changes in what four variables will shift the long run aggregate supply curve?

Correct AnswerverifiedLabor, capital, natu...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified
Long run e...
View Answer

Correct Answer
verified

Correct Answer
verified

Figure 33-2 -Refer to Figure 33-2. If the economy is in long-run equilibrium, then an adverse shift in short-run aggregate supply would move the economy from

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A decrease in aggregate demand causes th...
View Answer

Correct Answer
verified
Labor, capital, natu...
View Answer