Exhibit 10.5 Refer to Exhibit 10.5, which shows the short-run equilibrium in an aggregate demand–aggregate supply model. If the economy is currently producing Y1 level of output, _____

Selling a commodity abroad for less than is charged in the home market or less than the cost of production is known as _____

If the economy is experiencing a sustained decrease in the price level, it is called _____

Net exports equal _____

The consumer price index (CPI) is a measure of the _____

A decrease in a person’s real wage necessarily means _____

Which approach to GDP adds up spending on all final goods and services produced in the United States during the year?

The _____ unemployed are those looking for work for 27 weeks or longer.

Suppose the nominal wages of workers in an economy increase by 7 percent while the price level rises by 5 percent. Real wages _____

Tariffs and quotas _____