Econ 16.2&3

Shows the amount of real GDP that could be produced at various price levels

• aggregate supply curve

• aggregate demand curve

• macroeconomic equilibrium

• downward

• upward

Shows the quantity of real GDP that would be purchased at various levels

• aggregate supply curve

• aggregate demand curve

• macroeconomic equilibrium

• downward

• upward

The level of real GDP consistent with a given price level

• aggregate supply curve

• aggregate demand curve

• macroeconomic equilibrium

• downward

• upward

Slope of the aggregate supply curve

• aggregate supply curve

• aggregate demand curve

• macroeconomic equilibrium

• downward

• upward

Slope of the aggregate demand curve

• aggregate supply curve

• aggregate demand curve

• macroeconomic equilibrium

• downward

• upward

Macroeconomic equilibrium is

• determined by the intersection of the supply curve and the demand curve

• determined by the aggregate supply curve

• determined by the intersection of the aggregate supply curve and the aggregate demand curve

• determined by the aggregate demand curve

What effect would a decrease in production costs for all firms have on the aggregate demand curve?

• the curve would level off

• the curve would shift to the right

• the curve would shift to the left

• the curve would not change

The aggregate demand curve has the slope it does because

• it must intersect the aggregate supply curve

• people are willing to purchase less at higher prices

• there is a single money supply of a fixed size in the economy at any one time

• the market tends toward equilibrium

What effect would a decrease in consumer savings have on the aggregate demand curve?

• the curve would level off

• the curve would shift to the right

• the curve would shift to the left

• the curve would not change

All of the following would cause aggregate supply to increase Except

• an increase in labor productivity

• an increase in interest rates

• the development of new technologies

• a decrease in government regulation