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Macroeconomic Modeling
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When the Federal Reserve increases the money supply, at a given price level the amount of output demanded is ______ and the aggregate demand curve shifts ______.
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When an aggregate demand curve is drawn with real GDP (Y) along the horizontal axis and the price level (P) along the vertical axis, if the money supply is decreased, then the aggregate demand curve will shift:
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When a long-term aggregate supply curve is drawn with real GDP (Y) along the horizontal axis and the price level (P) along the vertical axis, this curve:
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The vertical long-run aggregate supply curve satisfies the classical dichotomy because the natural rate of output does not depend on:
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The relationship between the quantity of output demanded and the aggregate price level is called:
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The relationship between the quantity of goods and services supplied and the price level is called:
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The assumption of constant velocity in the quantity equation is the equivalent of the assumption of a constant:
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The aggregate demand curve tells us possible:
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The aggregate demand curve is the ______ relationship between the quantity of output demanded and the ______.
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Looking at the aggregate demand curve alone, one can tell ______ that will prevail in the economy.
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