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ECON-1012-B-Introduction to Macroeconomics

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An economy is at full employment when aggregate demand decreases. Which of the following changes does not occur as a result of a decrease in aggregate demand? 
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Which of the following variables is not held constant along a given aggregate demand curve? 
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Which of the following events occur if potential GDP increases?
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Table 10.3.2

The three columns of the table are titled Price level (2012 = 100), and real GDP demanded and real GDP supplied in trillions of 2012 dollars. The rows display the data as follows: 140; 4; 8130; 5; 7120; 6; 6110; 7; 5100; 8; 4

Refer to Table 10.3.2, which shows the aggregate demand and aggregate supply schedules. Potential GDP is $7 trillion. With no change in monetary policy and fiscal policy, which of the following events will occur in the long run?
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Table 10.3.1

The three columns of the table are titled Price level (2012 = 100), and real GDP demanded and real GDP supplied in billions of 2012 dollars. The rows display the data as follows: 100; 800; 300110; 700; 400120; 600; 500130; 500; 600140; 400; 700

Refer to Table 10.3.1, which shows the aggregate demand and aggregate supply schedules. Potential GDP is $600 billion. In long-run equilibrium, what is the economy's price level and real GDP?

The price level is ________ and real GDP is ________ billion.
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Which of the following events occurs when the expected inflation rate increases?
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If the multiplier is 2 and investment increases by $10 billion, which of the following events occurs?

The AD curve shifts
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How does an increase in the price level influence the AE curve and equilibrium expenditure?
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Short Description: A line graph of price level versus real G D P. Long Description: The vertical axis is labelled, price level (G D P deflator, 20 12 = 100) and ranges from 60 to 110 in increments of 10 with a kink near the origin. The horizontal axis is labelled, real G D P (billions of 20 12 dollars) and ranges from 450 to 700 in increments of 50 with a kink near the origin. The line for S A S is a concave up curve that slopes upward from the lower left corner to the upper right corner passing through the points (475, 60), (550, 70), and (600, 80). The line for A D slopes downward from the upper left corner to the lower right corner, passing through the points (550, 90), (600, 80), and (650, 70). The line for L A S is a vertical line from the point (550, 0) on the horizontal axis passing through the points (550, 70) and (550, 90).

Figure 10.3.2

Refer to Figure 10.3.2, which shows the AS-AD model. When an economy is in short-run macroeconomic equilibrium, what is real GDP?
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If the saving function is S = -25 + 0.4YD, what is autonomous consumption?
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