Question

1. Explain what will happen to the price level real GDP and the unemployment rate in the following cases:
a. AD falls by the same amount that SRAS rises
b. AD falls by less than SRAS rises
c. AD falls by more than SRAS falls
d. AD falls by the same amount that SRAS falls
e. AD falls by less than SRAS falls
2. Explain how expectations about future sales will affect investment.
3. How will a change in the money supply affect aggregate demand?
4. Under what conditions can consumption rise without some other spending component declining?
5. Can total spending be a greater dollar amount than the money supply? Explain your answer.
6. what is the difference between a change in the quantity supplied of real GDP and a change in short run aggregate supply?
7. a change in the price level affects which of the following a) the quantity demanded of real GDP b) aggregate demand c) short run aggregate supply d) the quantity supplied of real GDP.
8.in the short run, what is the impact on the price level and real GDP of each of the following: a) an increase in consumption brought about by a decrease in interest rates. b) a decrease in exports brought about by an appreciation of the dollar c) rise and wage rates d) a beneficial supply shock e) an adverse supply shock f) a decline in productivity.
9. identify the details of each of the following explanations for an upward-sloping sras for a) sticky wage explanation b) worker misperception explanation
10. what is the difference between short-run equilibrium and short run equilibrium?
11. if economists is sitting in the oval office of the White House across the desk from the president of the United States, the president asked how does the unemployment rate look for the next quarter. The economics answers "it's not good. I don't think real GDP is going to be as high as we initially thought the problem seems to be foreign income. it's just not growing at the rate we thought it was going to grow." how can foreign income affect US unemployment?
12. suppose that at a price index of 150 for the quantity demanded of US Real GDP is 10.0 trillion worth of goods. do these data represent aggregate demand or a point on an aggregate demand curve? explain your answer.

Answer 1