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14 Cards in this Set
- Front
- Back
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Given an upward sloping aggregate supply curve, a reduction in aggregate demand would tend to |
Decrease the level of equilibrium real GDP and the overall price level |
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Given an upward sloping aggregate supply curve, an increase in aggregate supply would tend to |
Increase equilibrium GDP But lower the price level |
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Suppose the economy is operating at full employment. If the aggregate supply curve is upward sloping, a reduction in aggregate demand would |
Cause an employment but lower the price level |
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A supply shock such as an increase in the price of imported oil would tend to |
Intensify unemployment while also raising prices |
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Which of the following would tend to increase aggregate demand? |
A reduction in tax rates |
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A reduction in the money supply would tend to |
Shift the aggregate demand curve to the left |
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Which of the following will not increase aggregate supply |
An increase in the money supply |
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Which of the following would cause the aggregate supply curve to shift to the left |
A general increase in raw material prices |
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Which of the following is not a source of cost – punish inflation? |
An increase in the level of government spending for social programs |
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Demand – pull inflation is caused by |
Increases in the level of total spending in the economy |
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What is a recession? |
A period of declining real incomes and rising unemployment |
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What is a depression? |
A severe recession |
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What is the natural level of output? |
The production of goods and services that an economy achieved in the long run when employment is at its normal rate |
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What is stagflation |
A period of falling output and rising prices |
