Chapter 22: Aggregate Demand and Aggregate Supply

Chapter 23: The Aggregate Expenditure Model

QUESTION 1

_____________ shows  the positive relationship between the price level and real GDP. In other words, it shows the total amount of final goods and services suppliers are willing to supply at a given price level. (Hint: 639-642, three words)

QUESTION 2

An increase in exports and a decrease in imports shifts  ____________ curve to the ____________ (Hint: pp.636-638, first blank: two words, second blank: one word )

QUESTION 3

If MPC is 0.5, then the multiplier would be _____(Hint: p. 682, calculate the exact number)

QUESTION 4

___________ represents the multiplier that only considers the impact of consumption changes on aggregate expenditures (Hint: 679-681, two words)

QUESTION 5

_______________ represents changes in inventories that firms did not anticipate (Hint: pp.677-679, three words)

QUESTION 6

An increase in investment shifts  ____________ curve to the ____________ (Hint: pp.636-638, first blank: two words, second blank: one word )

QUESTION 7

Good weather conditions shifts short-run ____________ curve to the ____________ (Hint: p. 643-646, first blank: two words, second blank: one word )

QUESTION 8

Long-term contracts between firms and employees make it difficult for firms to adjust wages they offer immediately. This is called, __________(Hint: pp.640-641, two words)

QUESTION 9

________ represents the additional saving that results from an additional dollar of income (Hint: pp.671-673, four words)

QUESTION 10

An increase in imports and a decrease in exports shifts  ____________ curve to the ____________ (Hint: pp.636-638, first blank: two words, second blank: one word )

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