Econ 100: Ch 13 quiz

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