stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Duplicate of Aggregate Demand-Aggregate Supply Flashcards | StudBud
Explore
/
Duplicate of Aggregate Demand-Aggregate Supply
Duplicate of Aggregate Demand-Aggregate Supply
18 terms
·
StudBud Administration
·
435 plays
#AGGREGATE DEMAND#MACROECONOMICS
Flashcards
18 cards
F
Practice quiz
P
Host live
L
Questions
18
Answers
1
In the long-run, this GDP gap will self-correct when wages...
go up and AD shifts to the right
go up and AD shifts to the left
go down and SRAS shifts to the right
go up and SRAS shifts to the left
2
The MPC is .5 and there is an autonomous increase in Government spending by $3 billion. How much will RGDP change?
$6 billion
$ 1.5 billion
- $ 6 billion
$15 billion
3
This graph shows
a recessionary gap
an inflationary gap
an economy on their PPC
an economy at the NRU
4
Reducing taxes in response to a recession is an example of _____.
expansionary fiscal policy
contractionary fiscal policy
5
If the Marginal Propensity to Consume is .9, the multiplier is
1/.9
10
1
9
6
A decrease in aggregate demand is seen as a(n) _____ the aggregate demand curve.
upward movement along
shift to the left in
shift to the right in
downward movement along
7
According to the AD curve, when the aggregate price level rises, quantity of aggregate output demanded
shifts to the right
does not change
falls
rises
8
This change could be the result of an increase in
the existing stock of physical capital
government transfer payments
personal income taxes
interest rates
9
One reason the Short Run Aggregate Supply Curve is upward sloping is because of
nominal wages
sticky wages
real wages
the wages of sin
10
What is myrrh?
whale vomit
resin from a thorn bush
secretions of a desert beetle
a gender fluid sea creature
11
Aggregate demand will shift to the RIGHT if:
the aggregate price level increases.
Personal Income taxes increase.
Interest rates increase
government purchases increase.
12
For this economy, which shift will cause a STAGFLATION?
SRAS increase
AD increase
AD decrease
SRAS decrease
13
The long-run level of Aggregate Supply is known as _____________ output or RGDP.
nominal
structural
potential
real
14
What could cause this change?
a decrease in wages
an increase oil prices
a decrease in Investment spending
an increase in interest rates
15
The long-run aggregate supply curve is vertical, because wages are _______ in the long run.
sticky
flexible
vertical
constant
16
Which statement is true for this economy?
NRU < U
NRU = RGDP
NRU = U
NRU > U
17
An increase in labor productivity will most likely result in:
a decrease in aggregate demand.
a decrease in aggregate supply.
an increase in aggregate supply.
an increase in aggregate demand.
18
The current RGDP is GREATER than Potential RGDP in which graph below?
graph (c) on the right
none of the above
graph (a) on the left
graph (b) in the middle
