chapter 12 aggregate demand and aggregate supply

Collective bargaining agreements that prohibit wage cuts for the duration of the contract contribute to

a price level that is inflexible downward

Which of the following would most likely shift the aggregate demand curve to the right?

an increase in stock prices that increases consumer wealth.

The immediate-short-run aggregate supply curve represents circumstances where

both input and output prices are fixed

Other things equal, appreciation of the dollar:

decreases aggregate demand in the United States and may increase aggregate supply by reducing the prices of imported resources.

determinants of aggregate demand

explain shifts in the aggregate demand curve.

The immediate-short-run aggregate supply curve is

horizontal

Graphically, cost-push inflation is shown as a:

leftward shift of the AS curve.

Which one of the following would not shift the aggregate demand curve

a change in the price level

Productivity Measures

real output per unit of input

Graphically demand

rightward shift of the AD curve along an upsloping AS curve

per-unit production costs

total input cost divided units of output.

.The shape of the immediate-short-run aggregate supply curve implies that

total output depends on the volume of spending

At the current price level, producers supply $375 billion of final goods and services while consumers purchase $355 billion of final goods and services. The price level is:

above equilibrium.