20: Aggregate Demand/supply
Terms in this set (16)
An increase in money supply, a ....... variable
price level, a ..... variable
quantity of goods and services an economy can produce, a ....... variable
separation of nominal and real variables is known as the.....
vertical axis of the aggregate supply and aggregate demand model shows the overall ....
aggregate ......... curve shows the quantity of output that households, firms, the government, foreign customers want to buy at each price level
in the long run, an increase in money growth will change which of the following?
The price level
The inflation rate
(The quantity of physical capital
The level of technological knowledge) <- not correct
Long-Run aggregate supply curve
whatever number they give you, put a vertical line on that number on the horizontal axis
suppose the gov.t passes a law that significantly increases the minimum wage. This policy will cause the natural rate of unemployment to......, which will:
rise, shift the long-run aggregate supply curve to the left
Determine how each event affects the position of the LRAS curve
anything that reduces natural resources or physical capital moves the curve to the left
anything that increases natural resources or physical capital moves the curve to the right.....duh.
short run aggregate supply curve slopes upward
if the price level is lower than the expected price level,
sales from catalogs will FALL, firms that rely on catalogs will respond by REDUCING the quantity of output they supply. The unexpected decrease in price level causes quantity of output supplied to FALL BELOW the natural rate of output
SHORT RUN IMPACT OF A HOUSING MARET SLUMP: (demand goes down, supply stays the same) a decrease in consumption spending shifts the ..... curve to the......, causing the price level to ....... the price level people expected and the quantity of output to ...... the natural rate of output. The housing market slump will cause unemployment rate to .... the natural rate of unemployment in the short run.
aggregate demand, left, fall below, fall below, rise above
LONG RUN IMPACT OF A HOUSING MARKET SLUMP: (demand goes down, supply goes up) price level expectations will .... and the short run .... curve will shift to the...... In the long run, the price level ....., the quantity of output ..... the natural rate of output, and the unemployment rate...... the natural rate of unemployment
adjust downward, aggregate supply, right, decreases, returns to, returns to
economic fluctutations II:
an increase in prduction costs shifts from ... to ... and moves economy from point J to point ..... the short run outcome resulting from the increase in production costs is known as ....
AS1, AS2, K, Stagflation
during the transition from short run to long run: higher wages = moving the economy from the point you just found to point .... Level of employment and output attained will begin to put ..... pressure on wages and prices. In the long run, price level in the economy will be ...., and the quantity of output will be ... billion
L, downward, 90, 80
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OTHER SETS BY THIS CREATOR
21: influence of monetary and fiscal policy on aggregate demand
17: money growth and inflation
16: the Monetary System
THIS SET IS OFTEN IN FOLDERS WITH...
Econ: Ch. 33
ECON 102 CH 17
ECO 111 ch 12 part2
Econ 102 Final