Schoolcraft College - ECON 201

1)A shift away from expenditures on domestic goods and a shift toward expenditures on foreign goods when the domestic price level increases is known as

2. Long-run aggregate supply reflects

3. What determines the total value of aggregate demand for U.S. real GDP?

4. According to the real-balance effect, an increase in the price level will

5. The horizontal axis for an aggregate demand curve measures

6. Refer to the above figure. A movement from B to D would be a result of

7. The interest rate effect is part of the reason

8. The aggregate demand curve is

9. Aggregate supply

10. Economic growth is demonstrated by the LRAS as it

11. According to the interest rate effect, a decrease in the price level will

12. A price level increase tends to reduce net exports, thereby reducing the amount of real

goods and services purchased in the United States. Economists refer to this phenomenon as

13. The long run aggregate supply curve is vertical because

14. If your income stays the same and the price level increases, you will buy fewer goods and

services due to the