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Aggregate Demand/Aggregate Supply Flashcards | StudBud
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Aggregate Demand/Aggregate Supply
Aggregate Demand/Aggregate Supply
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Answers
1
When the AD curve shifts to the right, what is the impact on price level?
It rises.
No effect
It falls.
2
Change in RGDP when an increase in PL leads to a change in foreign spending is the ___.
Interest rate effect
Net export effect
Real balance or wealth effect
3
Which of the following may cause the SRAS curve to shift to the right?
Increase in energy costs
Technology improvements
Government spending increases
4
What is the shape of the Long Run Aggregate Supply curve (LRAS)?
Vertical at Full Employment RGDP
Negative slope - inverse relationship between SRAS & PL
Positive slope - direct relationship between SRAS & PL
Horizontal at Full Employment price level
5
All of the following are determinants of aggregate demand EXCEPT
Consumer Spending
Investment Spending
Productivity
Spending by foreigners in our economy
6
If RGDP is rising, what can we infer about the unemployment rate?
We can infer that it's rising.
We can infer that it is falling.
7
Increasing costs of inputs will shift which curve in which direction?
AD & to the right
AD & to the left
SRAS & to the left
SRAS & to the right
8
Stagflation is rare and is associated with all of the following EXCEPT:
Increase in the Price Level
Rising RGDP
High unemployment rate
Leftward shift of the SRAS
9
If AD shifts to the right, which of the following changes will occur?
Price level rises.
Real GDP falls.
Price level falls.
10
Which of the following best describes the short-run aggregate supply curve?
Shows level of real output produced at each price level.
It shows the relationship between price and Quan. supplied.
It is vertical at full employment GDP
