(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