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 141

Multiple Choice

Review LaterAdd Note

Review Later

Which one of the following would not shift the aggregate demand curve?

A) a change in the price level
B) depreciation of the international value of the dollar
C) a decline in the interest rate at each possible price level
D) an increase in personal income tax rates

Correct Answer

verified

Show Answer

Question 142

Multiple Choice

Review LaterAdd Note

Review Later

In the aggregate demand-aggregate supply model, the economy's price level is assumed to be

A) constant, just like in the aggregate expenditures model.
B) variable, just like in the aggregate expenditures model.
C) constant, unlike in the aggregate expenditures model.
D) variable, unlike in the aggregate expenditures model.

Correct Answer

verified

Show Answer

Question 143

Multiple Choice

Review LaterAdd Note

A movement upward along a given aggregate demand curve is equivalent to a(n)

Which of the following is incorrect?

The real-balances effect indicates that

A decrease in expected returns on investment will most likely shift the AD curve to the

An expected increase in the prices of consumer goods in the near future will

A change in which one of the following factors would shift the aggregate supply curve?

The relationship between the aggregate demand curve and the aggregate expenditures model is derived from the fact that

The aggregate expenditures model and the aggregate demand curve can be reconciled because, other things equal, in the aggregate expenditures model,

The version of aggregate supply that allows for changes in both product prices and resource prices is the

The economy's long-run AS curve assumes that wages and other resource prices

Graphically, demand-pull inflation is shown as a

A rightward shift of the AD curve in the very steep upper part of the short-run AS curve will

If the dollar appreciates relative to foreign currencies, then

Per-unit production cost is

$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Real Domestic Output } \\\text { Demanded (in Billions) }\end{array} & \text { Price Level (Index Value) } & \begin{array} { c } \text { Real Domestic Output } \\\text { Supplied }\end{array} \\\hline \$ 500 & 350 & \$ 3,500 \\\hline 1,000 & 300 & 3,000 \\\hline 1,500 & 250 & 2,500 \\\hline 2,000 & 200 & 2,000 \\\hline 2,500 & 150 & 1,500 \\\hline 3,000 & 100 & 1,000 \\\hline\end{array}$ The accompanying table shows the aggregate demand and aggregate supply schedule for a hypothetical economy. If the quantity of real domestic output demanded increased by $1,000 at Each price level, the new equilibrium price level and quantity of real domestic output would be