past quizzes and turning point ?s

If firms find that consumers are purchasing more than expected, which of the following would you expect?

Aggregate expenditure will likely be greater than GDP.

If economists forecast a decrease in aggregate expenditure, which of the following is likely to occur?

GDP will fall

If aggregate expenditure is less than GDP, how will the economy reach macroeconomic equilibrium?

Inventories will rise, and GDP and employment will decline.

What sequence of events results from a decrease in aggregate demand?

The price level falls, inventories increase, firms respond by reducing output and employment.

When aggregate expenditure is more than GDP what is true

There was an unplanned decrease in inventories.

In the macroeconomic short run

actual real GDP may be less than or more than potential GDP.

The components of aggregate expenditure are

consumption planned investment government purchases net exports

When interest rates decrease, the opportunity cost of holding money will ________, and the quantity of money demanded by households and firms will ________.

decreases increases

Economists first began studying the relationship between changes in aggregate expenditures and changes in GDP

during the great depression

In 2017, Boeing announced that it was laying off 1,800 employees in addition to the 7,000 workers it had cut the year before. The laid-off employees who were eventually able to find jobs at another aircraft manufacturer such as Airbus or Bombardier would have been considered ________ during the time they were out of work.

frictionally unemployed

Inventories refer to

goods that have been produced but not yet sold

Which of the following shifts the aggregate demand curve rightward? allowing more oil drilling on Federal lands increasing Medicare, Medicaid, and Social Security payments loosening immigration policies raising taxes on the rich

increasing Medicare, Medicaid, and Social Security payments

It is difficult to predict exact macroeconomic changes because

inflection points are hard to predict.

in Financial Markets, Which Variable Can We Use to Estimate the Opportunity Cost of Holding Money?

interest rates

The economy can be in equilibrium if, and only if,

planned investment equals actual investment.

We distinguish between the long-run aggregate supply curve and the short-run aggregate supply curve. In the long run

real GDP equals potential GDP

As a result of a tax increase

the aggregate demand curve shifts leftward

Fiscal policy is

the attempt to influence the economy using taxes, transfer payments, and government expenditures

which of the following is not considered investment? the acquisition of capital goods the construction of a new factory the purchase of government bonds the increase in planned inventories

the purchase of government bonds

Other things constant, the economy's aggregate demand curve shows that

the quantity of real GDP demanded decreases when the price level rises.

Aggregate output will increase if there is a(n)

unplanned fall in inventories

what 3 factors determine the slope for the aggregate expenditure curve

wealth interest rates inventories