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Econ 202 _Chapter11_AS/AD Model Flashcards | StudBud

Explore/Econ 202 _Chapter11_AS/AD Model

The Aggregate Demand Curve:

What causes AS to shift?

Econ 202 _Chapter11_AS/AD Model

9 terms·StudBud Administration·103 plays

An #economics quiz on aggregate demand and aggregate supply.

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Questions 9

Answers

1
What causes AS to shift?
A tax cut.
Consumer confidence.
Productivity
Higher input prices.
2
The Aggregate Demand Curve:
Is the output of goods.
Is total spending
Curves down to the right.
Curves up to the right.
3
AS = AD
Equilibrium
Full-employment
Potential GDP
Market zen
4
If equilibrium is to the right of potential GDP then...
Unemployment is low.
Inflation pressure is low.
A recession is occurring.
Employment is low.
5
What causes AD to shift?
A tax cut.
Consumer confidence.
Productivity
Higher input prices.
6
Kaynes' law is:
Supply creates its own demand.
Demand creates its own supply.
Economics is about the short-run
Say what you want. When you want.
7
The Aggregate Supply Curve:
Curves down to the right.
Curves up to the right.
Is total spending
Is the output of goods.
8
Say's law is:
Say what you want. When you want.
Economics is about the short-run
Supply creates its own demand.
Demand creates its own supply.
9
Another name for Potential GDP is:
The market trend
A recession
Full employment
Output/input