quiz 7 CH.32

Refer to the graph. Which of the following factors will shift AD 1 to AD 3?

a decrease in consumer wealth

In the diagram, a shift from AS 1 to AS 2 might be caused by

a decrease in the prices of domestic resources.

If Congress passed new laws significantly increasing the regulation of business, this action would tend to

increase per-unit production costs and shift the aggregate demand curve to the left

In the figure, AD 1 and AS 1 represent the original aggregate supply and demand curves, and AD 2 and AS 2 show the new aggregate demand and supply curves. The change in aggregate supply from AS 1 to AS 2 could be caused by

the increase in productivity.

Refer to the diagrams, in which AD 1 and AS 1 are the "before" curves and AD 2 and AS 2 are the "after" curves. Other things equal, inflation is absent in

B ????

In the accompanying graph, the long-run aggregate supply curve would be represented by which line?

4 vertical line

Refer to the diagrams, in which AD 1 and AS 1 are the "before" curves and AD 2 and AS 2 are the "after" curves. A recession is depicted by

A and B

Refer to the diagrams, in which AD 1 and AS 1 are the "before" curves and AD 2 and AS 2 are the "after" curves. Other things equal, an increase in investment spending is depicted by

C

Refer to the diagram. If the aggregate supply curve shifted from AS 0 to AS 1 and the aggregate demand curve remains at AD 0, we could say that

aggregate supply has decreased, equilibrium output has decreased, and the price level has increased

Other things equal, appreciation of the dollar

decrease aggregate demand in the U.S and may increase aggregate supply by reducing the prices of imported resources. (If the dollar price of foreign currencies falls (that is, the dollar appreciates), we would expect: reduce the equilibrium price level, assuming downward flexible prices)