The diiffrence between Real and Nominal GDP is

Change in price level from base year to current year

An increase in the incomes of U.S. trading partners would shift the U.S.

aggregate demand curve to the right

Higher prices of imported resources will:

make the aggregate demand curve steeper

What is the definition of "Aggregate Demand"?

total spending on goods in a set time period and price

What does GDP measure?

Final value of output in a given time period

n increase in the price level will:

reduce the purchasing power and consumption of households

studbud

Aggregate Demand & Supply

19 termsStudBud Administration62 plays

Imported from external platform

Flashcards19 cardsFPractice quizPHost liveL

Questions 19

Answers

1
A severe recession
Natural Rate of Output
Stagflation
Depression
Recession
2
The tendency for price level to rise when AD increases but not fall when AD declines
interest rate effect
real-balances effect
Price war
Ratchet effect
3
What type of unemployment is caused by AD below equilibrium?
None of these
Cyclical
Structural
Frictional
4
The diiffrence between Real and Nominal GDP is
Change in price level from base year to current year
None of the above
measured by excluding some of the sectors
that real GDP is always smaller than Nominal GDP
5
The AD curve shows a(n) ___________ relationship between the average price level & real output
same
direct
equal
inverse
6
The word "aggregate" means...
specific
partial
total
greatest
7
A period of falling output and rising prices
Depression
Recession
Natural Rate of Output
Stagflation
8
An increase in the incomes of U.S. trading partners would shift the U.S.
aggregate demand curve to the left
aggregate demand curve to the right
aggregate supply curve to the right
aggregate supply curve to the left
9
The price level at which the aggregate demand curve intersects the aggregate supply curve.
equilibrium price level
efficiency wages
price war
equilibrium real output
10
Higher prices of imported resources will:
shift the aggregate demand curve to the left
shift the aggregate supply curve to the left
make the aggregate demand curve steeper
11
A period of declining real incomes and rising unemployment
Depression
Stagflation
Recession
Aggregate Supply Curve
12
When comparing a nation's economic position with another nation one should use its
Per Capita GDP
Currency in circulation
GDP
None of the above
13
What is the definition of "Aggregate Demand"?
total spending on goods in a set time period and price
he total supply of goods during a certain period
level of demand for goods during a given time period
the average supply of goods and services in an economy.
14
A curve that shows the quantity of goods and services that firms choose to produce and sell at
Aggregate Supply Curve
Natural Rate of Output
Recession
Aggregate Demand Curve
15
Factors such as input prices, productivity,that shift the aggregate supply curve
Aggregate Supply
determinants of AS
determinants of AD
short-run aggregate supply
16
The costs associated with changing prices
menu costs
personal taxes
deregulation
price war
17
A leftward shift of the short-run aggregate supply curve would illustrate:
demand-pull inflation
an inflationary gap
a positive GDP gap
cost-push inflation
18
What does GDP measure?
Inflation
Final value of output in a given time period
Business investments
Fiscal policy decisions made by Congress
19
n increase in the price level will:
reduce the value of household debt and increase investment
increase production costs and reduce SRAS
increase net exports
reduce the purchasing power and consumption of households

Aggregate Demand & Supply Flashcards | StudBud