Econ chapter 32 33

Which would most likely shift the aggregate supply curve? A change in the prices of:

Resources

An increase in aggregate demand is most likely to be caused by:

A decrease in the tax rates on household income

Demand-pull inflation is illustrated in the short run aggregate supply-aggregate demand model as a shift of the aggregate:

Demand to the right

The aggregate demand curve shows the:

Inverse relationship between the price level and the quantity of real GDP purchased

A decrease in expected returns on investment will most likely shift the AD curve to the:

Left because Ig will decrease

The real-balances effect on aggregate demand suggests that a:

Lower price level will increase the real value of many financial assets and therefore cause an increase in spending

An aggregate supply curve represents the relationship between the

Price level and the production of real domestic output

In the mid-1970s, changes in oil prices greatly affected U.S. inflation. When oil prices rose, the U.S. would experience:

Cost-push inflation and falling output

A decrease in aggregate supply means:

The real domestic output would decrease and the price level would rise

Wage contracts, efficiency wages, and the minimum wage are explanations for why:

Wages tend to be inflexible downward

In the Great Recession of 2007-2009, the stock market values shrank, causing a reverse:

Wealth effect

If the national incomes of our trading partners increase, then our:

Aggregate demand increases because net exports increase

Which would most likely increase aggregate supply?

An increase in productivity

Which of the following events would most likely reduce aggregate demand?

An increase in real interest rates

The short-run aggregate supply curve:

Becomes steep at output levels above the full-employment output

A decrease in aggregate demand in the short run will reduce:

Both real output and the price level

The foreign purchases effect on aggregate demand suggests that a:

Rise in our domestic price level will increase our imports and reduce our exports, thereby reducing the net exports component of aggregate demand

A fall in the prices of inputs will shift the aggregate:

Supply curve rightward

If at a particular price level, real output from producers is greater than real output desired by purchasers, then there will be a general:

Surplus and the price level will fall

When the general price level in our economy increases, the following effects occur except:

The purchasing power of people's savings will increase

With cost-push inflation in the short run, there will be:

A decrease real GDP

Government actions that were taken in order to stimulate the economy during the Great Recession of 2007-09 included the following, except:

A sharp increase in the natural rate of unemployment

An increase in personal income tax rates will cause a(n):

Decrease (or shift left) in aggregate demand

An expected increase in the prices of consumer goods in the near future will:

Increase (or shift right) in aggregate demand now

An increase in productivity will:

Increase aggregate supply

If the price of crude oil decreases, then this would most likely:

Increase aggregate supply in the U.S.

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 supply curve to the left

The economy experiences an increase in the price level and a decrease in real domestic output. Which of the following is a likely explanation?

Input prices have increased

Macroeconomic equilibrium in the short run

does not always occurs at full-employment GDP.

When the economy is experiencing demand-pull inflation

its real GDP tends to be rising.

The shape of the short-run aggregate supply curve indicates that as the general price level rises,

output will expand but not by much when the economy reaches full employment.