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