Videos for Aggregate Demand and Aggregate Supply

In which time period did the predictions of the Phillips Curve fit U.S. economic data well?

1960s

According to the video, in long-run equilibrium:

AS, AD, and LRAS all intersect at Y*.

Which of the following scenarios was not used as an example in the video?

As the population ages and more people stop working, consumption falls.

Based on the video, what is the relationship between aggregate expenditures and aggregate demand?

As the price level rises, Aggregate Expenditure shifts down and there is movement up and along Aggregate Demand.

According to the video, why can't economic expansions last forever?

Eventually, nominal wages and the costs of other resources will rise.

Which of the following scenarios was used as a specific example in the video?

In response to rising incomes, Asian airlines purchase additional airplanes made in the United States.

According to the video, what key assumption underlies the short-run aggregate supply curve?

Wages are sticky in the short run and do not immediately adjust to changes in economic activity.

How is stagflation represented in the AD-AS model?

a decrease in AS

According to the video, what does the aggregate demand curve look like?

a downward-sloping line

Which of the following images was shown prominently in the video during the explanation of the real balances effect?

a piggy bank

Based on the video example, what would result in an increase in output, either by increasing AD or AS?

a sharp decline in oil prices

According to the video, the long-run aggregate supply curve is:

a vertical line.

In the video, what caused an increase in aggregate demand?

an increase in government purchases

Based on the video example, an increase in which of the following would decrease aggregate supply?

the price of oil

According to the Phillips Curve, if inflation is high:

unemployment is low.