Fear of unemployment increasing next year leads to

Leftward shift of AD due to C and I

A fall in personal tax rates causes

a right ward shift of the AD curve due to C

LRAS is vertical because

changes in PL have no effect on output

A rise in the interest rate causes

a leftward shift of the AD curve

Aggregate demand measures

the goods and services bought in an economy

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Aggregate Supply and Aggregate Demand

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Quiz on the basics of AD and AS #Aggregatedemand #aggregatesupply

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Questions 13

Answers

1
Decreases in the stock market decrease aggregate demand by decreasing which of the following?
consumer wealth
interest rates
tax revenues
the price level
2
Fear of unemployment increasing next year leads to
Rightward shift of AD due to C
Leftward shift of AD due to X
Rightward shift of AD due to I
Leftward shift of AD due to C and I
3
If wages increase, the SRAS curve will
movement along the curve
be vertical
shift left
shift right
4
The short run in economics is
1 year
when factor prices are flexible
when factor prices are fixed
6 months
5
Which of the following will shift the AD curve to the right?
a decrease in wealth
pessimistic consumer expectations
increase in interest rates
increase in military spending
6
In the long run, we are all dead....
False
True
7
When desktop computers came onto the scene,
AD shifted left
AS did not change
AS shifted left
AS shifted right
8
A fall in personal tax rates causes
a rightward shift of the AS curve
a right ward shift of the AD curve due to C
a leftward shift of the AD curve due to C
a leftward shift of the AD curve due to I
9
LRAS is vertical because
Consumers buy total output
changes in PL have no effect on output
Consumers stop buying
Producers quit producing
10
What causes the upward slope of the AS curve?
supply shocks
profit motive
increase interest rates
decrease in taxes
11
A rise in the interest rate causes
movement along the AD curve
a leftward shift of the AD curve
a rightward shift of the AD curve
movement along the AS curve
12
Aggregate demand measures
when you feel aggravated by shopping too much
the goods and services produced in an economy
the goods and services bought in an economy
the demand for a specific good in an economy
13
A law which decreases retirement benefits to workers will cause
SRAS to decrease
cause higher unemployment
SRAS to shift left
SRAS to shift right

Aggregate Supply and Aggregate Demand Flashcards | StudBud