NAME

Question types


Start with


Question limit

of 29 available terms

Advertisement Upgrade to remove ads
Print test

5 Written questions

5 Matching questions

  1. aggregate demand
  2. aggregate supply
  3. determinants of aggregate supply
  4. equilibrium real output
  5. input prices, productivity, legal-institutional
  1. a Factors such as input prices, productivity, and the legal-institutional environment that, if they change, shift the aggregate supply curve.
  2. b A schedule or curve showing the total quantity of goods and services supplied (produced) at different price levels.
  3. c The determinants of aggregate supply are BLANK BLANKS, BLANK, and the BLANK-BLANK environment. A change in any one of these factors will change per-unit production costs at each level of output and therefore will shift the aggregate supply curve.
  4. d The gross domestic product at which the total quantity of final goods and services purchased (aggregate expenditures) is equal to the total quantity of final goods and services produced (the real domestic output); the real domestic output at which the aggregate demand curve intersects the aggregate supply curve.
  5. e The BLANK BLANK curve shows the level of real output that the economy demands at each price level.

5 Multiple choice questions

  1. An aggregate supply curve for which real output, but not the price level, changes when the aggregate demand curves shifts; a horizontal aggregate supply curve that implies an inflexible price level.
  2. An aggregate supply curve relevant to a time period in which input prices (particularly nominal wages) do not change in response to changes in the price level.
  3. The reluctance of firms to cut prices during recessions (that they think will be short-lived) because of the costs of altering and communicating their price reductions; named after the cost associated with printing new menus at restaurants.
  4. The intersection of the aggregate demand and aggregate supply curves determines an economy's BLANK price level and real GDP. At the intersection, the quantity of real GDP demanded equals the quantity of real GDP supplied.
  5. The determinants of aggregate demand consist of spending by domestic BLANKS, by businesses, by BLANK, and by foreign buyers. The extent of the shift is determined by the size of the initial change in spending and the strength of the economy's BLANK.

5 True/False questions

  1. interest-rate effectThe tendency for increases in the price level to lower the real value (or purchasing power) of financial assets with fixed money value and, as a result, to reduce total spending and real output, and conversely for decreases in the price level.

          

  2. aggregate supply, flexibilityThe BLANK BLANK curve shows the levels of real output that businesses will produce at various possible price levels. The slope of the aggregate supply curve depends upon the BLANKITY of input and output prices. Since these vary over time, aggregate supply curves are categorized into three time horizons, each having different underlying assumptions about the flexibility of input and output prices.

          

  3. real-balances effectThe tendency for increases in the price level to lower the real value (or purchasing power) of financial assets with fixed money value and, as a result, to reduce total spending and real output, and conversely for decreases in the price level.

          

  4. demand, supplyA schedule or curve showing the total quantity of goods and services supplied (produced) at different price levels.

          

  5. aggregate supplyA schedule or curve that shows the total quantity of goods and services demanded (purchased) at different price levels.

          

Create Set