13-1 The Aggregate Demand Curve

1. True or False (Why?): An increased price level reduces the quantities of investment goods and consumer durables demanded.

13-2 Shifts in the Aggregate Demand Curve

2. Fill-in-the-Blank: An increase in the demand for consumption goods results in a (n) _________ in aggregate demand.

3. Fill-in-the-Blank: A falling demand for investment goods results in a (n) _________ in aggregate demand.

4. True or False (Why?): An increase in the money supply tends to decrease expenditures on consumption and on investment, ceteris paribus.

13-3 The Aggregate Supply Curve

5. What relationship does the short-run aggregate supply curve represent?

13-4 Shifts in the Aggregate Supply Curve

6. Fill-in-the-Blank: Lower input costs __________ the level of RGDP supplied at any given price level.

7. What would happen to short- and long-run aggregate supply if unusually good weather led to bumper crops of most agricultural produce?

13-5 Macroeconomic Equilibrium

8. What is demand-pull inflation?

9. True or False: Cost-push inflation is caused by a rightward shift in the short-run aggregate supply curve.

10. Fill-in-the-Blank: The economy self-corrects for a short-run recession through __________ wages and prices