AD/AS

From point B, all of the following are true of what will happen in the LR EXCEPT

When the price level increases, interest rates increase and consumption decreases?

Which side of LR Phillips curve is a Recessionary Gap?

What is AD?

If AS increases

Which side of LR Phillips curve is an Inflationary Gap?

All of the following are true of the economy at this equilibrium point EXCEPT

Which side of LRAS curve is a Recessionary Gap?

The Stock Market booms increasing wealth in America.

What is AS?

Why is SRAS upward sloping and not vertical?

Which side of LRAS curve is an Inflationary Gap?

A negative supply shock occurs.

If AS decreases

If AD decreases

All of the following are true of the economy at equilibrium point B EXCEPT

Government Increases taxes on consumers.

Government increases regulations.

New technology advances improve productivity.

As the average price level decreases, the purchasing power of people's cash balances increases.

All the following are true of what will occur in the LR from this point EXCEPT

China, a major trading partner, enters into a recession.

The keynesian range is

If AS is horizontal and consumers fear a recession is coming?

If AS is vertical and government increases spending?

If AD increases

The Fed lowers interest rates?