Macroeconomics Ch. 14 Review

Aggregate Demand curve indicates the relationship between the

Which could be expected to shift the AD curve?

lower price level will make domestically produced exports less spendy relative to foreign goods

Which of the following will increase Aggregate demand in the U.S.?

cut in govt spending, a decr in income abroad, an incr in taxes or we expect our income to fall

For an economy, aggregate demand equals:

When price level in the U.S. rises,

A change in which of the following would shift the AD curve?

Which is not a component of the AD curve?

Which would shift AD curve to the left?

The aggregate demand curve slopes

When prices rise, interest rates increase, loans decrease. Consumption/investment discouraged:

The total qty of G & S demanded by households, firms, foreigners & govt at varying price levels

An increase in oil prices will shift the aggregate

The AS curve shows the level of real GDP produced in the economy at different price levels.

Other factors held constant, a decrease in resource prices will shift the Aggregate

Given AD, a decrease in AS creates

Other things constant, an increase in resource prices will

How will an increase in the world price of crude oil influence an oil importing country (U.S.)?

Quantity of goods and services producers will supply at different price levels:

An increase in the gen. prices will reduce the Aggregate qty of goods and services demanded.