(ECON 100) Quiz #13
In the figure above, the shift in the aggregate demand curve from AD1 to AD3 could be the result of an increase in
the foreign exchange rate.
A fall in the real wage rate ________ firms' profits and leads to ________ in the quantity supplied.
raises; an increase
Which of the following factors could start a demand-pull inflation?
an increase in the quantity of money
Starting from a situation of full employment, an increase in aggregate demand creates ________ and ________ the price level.
an inflationary gap; raises
Aggregate demand ________ and shifts the AD curve ________ when ________.
decreases; leftward; foreign incomes decrease
A change in the price level produces a ________ the aggregate demand curve. i. shift in ii. change in the slope of iii. movement along
iii only
An increase in potential GDP ________ aggregate supply and ________.
increases; shifts the AS curve rightward
If the economy is at macroeconomic equilibrium, then real GDP ________.
might be equal to, greater than, or less than potential GDP
If the price level increases from 110.0 to 115.0, the quantity of ________.
real GDP supplied will increase
The aggregate supply curve shifts rightward when ________.
the money wage rate falls