Fill in the blanks to make the following statements correct. a. Macroeconomic equilibrium occurs at the intersection
Question:
Fill in the blanks to make the following statements correct.
a. Macroeconomic equilibrium occurs at the intersection of and rium levels of _______and _______ and determines equilibrium levels of _________ and ___________.
b. If the \(A S\) curve is upward sloping, a positive \(A D\) shock will cause the price level to _______ and real GDP to _________ . A negative \(A D\) shock will cause the price level to _________ and real GDP to ___________
c. A positive \(A S\) shock will cause the price level to and real GDP to . A negative \(A S\) shock will cause the price level to ___ and real GDP to __________ . A negative AS shock will cause the price level to ____________ and real GDP to __________.
d. In previous chapters, the simple multiplier measured the change in real GDP in response to a change in autonomous expenditure when the price level was constant. When the price level varies, the multiplier is _________ than the simple multiplier.
e. An increase in autonomous government spending
is a(n) __________ AD shock, which will initially
cause a(n) _________ shift of the AE curve and a(n) _________
shift of the AD curve. Given an upwardsloping
aggregate supply curve, there will be
a(n) __________ in the price level, which leads to a
partial _____________ shift of the AE curve.
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