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Economic Final Review- The Aggregate Market
Study online at quizlet
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The adjustment speed, from fastest to
slowest, of the three aggregated
macroeconomic markets is:

financial,
product,
resource
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The aggregate market is also referred to as
the:

AD-AS analysis
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The aggregate market is commonly used
to analyze:

assorted
macroeconomic
phenomenon
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The expenditures included in aggregate
demand are:

consumption,
investment,
government
purchases, net
exports
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The GDP price deflator is a measure of:

the average price
level
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High or rising rates of unemployment
are most likely associated with a(n):

recessionary gap
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21
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An increase in consumption
expenditures is most likely to cause a(n)
__________ shift in the _____ curve
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rightward, LRAS

The average of the prices of all final goods
and services produced in the economy,
including those purchased by the
household, business, government, and
foreign sectors is the

GDP deflator
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23
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A change in the purchasing power of
people's cash balances caused by a change
in the average price level is called the:

real-balance
effect
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24
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In the aggregate market, the "force" of
aggregate demand is:

aggregate
expenditures by
the four sectors
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no change, an
increase

9
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In the long-run aggregate market, an
increase in net exports will generate
__________ in real production and
__________ in the price level
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Changes in short-run aggregate supply
can be caused by changes in:

the quantity of
land
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a decrease, an
increase

11
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The component of the circular flow that
is most closely related to the aggregate
market analysis is the:

product
markets
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12
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an increase, an
increase

13
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28
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A decrease in aggregate demand is
illustrate by a(n):

leftward shift of
the AD curve
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29
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A key problem resulting from inflation
is:

uncertainty of
future prices
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A key problem resulting from
unemployed labor is:

personal
hardships
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A decrease in the price level will lead to:

an increase in
aggregate
expenditures
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The long-run aggregate supply curve is:

vertical at the
full-employment
level
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Economists prefer measuring the
economy's average price using the:

GDP price
deflator

32
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5
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7
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15
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The positive slope of the short-run aggregate supply curve is due to:

misperceived real wages
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A rightward shift of the AD curve is most likely caused by an increase in:

the federal deficit
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The self-correction mechanism that moves the economy from the short run to the long run
is based on:

disequilibrium in the resource
markets
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The short-run aggregate supply curve is like the market supply curve in that:

both have a price variable
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Supply-management policies are designed to shift the:

AS curve
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The time required to move from the short run to the long run:

is shorter for more technologically
advanced economies
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The total real production of final goods and services available to the domestic economy at
a range of price levels during a given time period is:

aggregate supply
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The two most noted stabilization policies are:;

fiscal and monetary

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