Macroeconomics Ch12

aggregate suppy curve to the right

A decrease in inflationary expectations that causes firms to decrease their prices shifts the

cost-push; lower

A leftward shift in the aggregate supply curve generates a ___ inflation and ___ output

demand-pull; higher

A sudden increase in aggregate demand causes a ___inflation and ___output

cost-push; lower

A sudden increase in the price of oil causes a ___ inflation and ___ output

A change in price level

All of the following shift the short-run aggregate supply curve EXCEPT price of oil price of raw materials wages of the labor force price level

increases aggregate output the government could adopt policies that

Increase output the government could adopt policies that

adopt policies that increase input prices and increase net taxes

To decrease output the government could

decrease aggregate supply and increase aggregate demand

To increases the price level the government could adopt policies that

how fast the price of factors of production respond to changes in the price level

What determines the slope of the aggregate supply curve is

Retired workers reentering the labor force

Which of the following would cause the short-run aggregate supply curve to a shift to the right higher energy prices increase in taxes increase in government regulation retired workers reentering the labor force

Cost-Push Inflation

caused by an increase in prices of inputs like labour, raw material,

Both the price level and output level to be lower than what they would have been without the policy action

An earthquake destroyed 50% of the Maldavian manufacturing base. The Maldavian government decided to use a contractionary fiscal policy to counter the effects of the earthquake on the economy. The use of the contractionary fiscal policy would have caused

The aggregate supply curve must shift to the left

For an economy to experience both a recession and inflation at the same time

the short-run aggregate supply curve to shift to the right

If the United States were to pass legislation that would make it easier for people to emigrate to the United States, this would cause

lower the corporate profits tax and have the Fed raise the discount rate

the decrease the price level the government could