ECON 1010 Chapter Notes - Chapter 28: Ceteris Paribus, Aggregate Supply, Aggregate Demand

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26 Sep 2015
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Topic: inflation cycles: demand-pull inflation occurs when, aggregate demand increases, unemployment is above the natural rate, input costs rise, people incorrectly forecast inflation, aggregate supply decreases. Topic: inflation cycles: inflation resulting from an increase in aggregate demand is called, cost-push inflation, political inflation, demand-pull inflation, anticipated inflation, unanticipated inflation. 1: stagflation occurs when the economy experiences both, falling inflation and increasing real gdp, falling inflation and decreasing real gdp, rising inflation and increasing real gdp, low exports and low imports, rising inflation and decreasing real gdp. Topic: inflation cycles: suppose the economy is in long-run equilibrium when the price of oil rises. Topic: inflation cycles: suppose opec unexpectedly collapses, which leads to a fall in the price of oil. As a result, the price level: falls, and real gdp increases, falls, and real gdp decreases, rises, and real gdp decreases, rises, and real gdp remains the same, rises, and real gdp increases.

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