Aggregate Supply and Demand Concepts

Front

A change in which of the following will cause the short-run aggregate supply curve to shift? I. The price level II. Government spending III. The cost of all inputs

Back

The cost of all inputs.

Front

According to the short-run Phillips Curve, there is a trade-off between inflation and unemployment.

Back

inflation and unemployment

Front

Assume that the economy is at full-employment equilibrium. Which of the following would lead to stagflation? (A) A leftward shift of the short-run aggregate supply curve only (B) A rightward shift of the short-run aggregate supply curve only (C) A leftward shift of the aggregate demand curve only (D) A rightward shift of the aggregate demand curve only (E) A rightward shift in both the short-run aggre

Back

A leftward shift of the short-run aggregate supply curve only.

Front

In an economy with a horizontal aggregate supply curve, an increase in government spending will cause output and the price level to change in which of the following ways? Output/Price Level (A) Decrease/ Increase (B) Increase/Increase (C) Increase/ No change (D) No change/ Increase (E) No change/ No change

Back

Increase/ No change

Front

If an economy's aggregate supply curve is upward sloping, an increase in government spending will most likely result in a decrease in the unemployment rate.

Back

unemployment rate

Front

If Price of an important resource increases, which of the following happens: SRAS shifts right, PPC shifts inward, SRPC shifts right, Movement down the SRPC, AD shifts left?

Back

SRPC shifts right

Front

An economy that is currently operating at full employment output --> interest rates increase (first shift) A) show on the AS/AD graph B) Show this on the phillips curve C) show this on the PPC

Back

Draw on your own paper

Front

An economy that is currently operating at an unemployment rate below the NRU --> Business taxes decreased (2nd shift) A) show on the AS/AD graph B) Show this on the phillips curve

Back

Draw on your own paper