Both the Great Recession and the Great Depression   a. had unemployment peaking at 10% b. were caused by short-run aggregate supply shocks c. were associated with falling prices d. were associated with a financial crisis

The Aggregate Demand line slopes down for a few reasons, one of which is ... Group of answer choices a. When consumers feel prices going up the purchase more b. When price levels go up, it reduces the purchasing power of savings c. When price levels go up, it increases the purchasing power of savings d. When suppliers feel prices going up the supply more

What impact would an increase in the nation's money supply or the federal government's budget deficit have on the real GDP and price level in the macroeconomy?  What phase of the business cycle might this create?

In the short run, policy that changes aggregate demand changes     both unemployment and the price level. neither unemployment nor the price level. only unemployment. only the price level.

h A period during which aggregate output declines. A) Recession B) Expansion C) Inflation

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

Decide if the following events are Micro, shifting supply or demand, or Macro, shifting AD or AS. Give the direction in which the graph shifts. Aggregate Demand Supply Demand Situation Aggregate Supply Sales of Atlanta Braves gear grows with the success of the team. 1. The President and Congress pass a trillion dollar stimulus bill to provide aid during recession. 2. 3. Salmonella outbreak in peanut processing plants threatens lunches for school children. Pomegranates are shown to be cancer fighting superfoods. 4. Value of U.S. dollars declines, exports increase. 5. 6. Global oil prices tank as shale fracking surges. Housing market crashes. Federal 7. Reserve slashes interest rates. 8. House votes to block EPA regulations on coal fired electricity plants.

The business cycle occurs because  A. the government is constantly trying to produce an inflationary gap, but expenditures in the economy cannot keep pace with the government's agenda  B. aggregate demand and short-run aggregate supply fluctuate, but the money wage rate does not adjust quickly enough to keep real GDP at potential GDP  C. potential GDP is increasing, and increases in aggregate demand cannot keep pace with increases in long-run aggregate supply  D. the Bank of Canada is constantly increasing the quantity of money.

A favorable aggregate supply shock could result from: a.an increase in wages. b.a rapid rise in oil prices. c.an appreciation of the dollar d.a sharp rise in productivity.

Sort the following shocks into aggregate supply or aggregate demand shocks. Remember that "shocks” include both good and bad events. No need to motivate your answer.  Fall in the price of oil A rise in consumer optimism A hurricane that destroys factories Good weather that creates a bumper crop A rise in sales taxes Foreigners buy fewer goods Fear New inventions occur at a faster pace A faster money growth rate