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Duplicate of AD/AS Flashcards | StudBud
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Duplicate of AD/AS
Duplicate of AD/AS
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StudBud Administration
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Aggregate Demand & Aggregate Supply
Flashcards
10 cards
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Practice quiz
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Host live
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Questions
10
Answers
1
What effect does a shift to the right in AD have on equilibrium price and quantity?
price down quantity down
price up quantity up
Price up, quantity down
price down quantity up
2
An economist suggests a bleak future for the American economy: what shift does this cause?
AD left
AS left
AD right
AS right
3
New machinery enters the toothbrush making industry, halving the production time. What shift?
AD Left
AS left
AD right
AS right
4
Disposable income in America rises dramatically: What shift does it cause on the AD/AS model?
AD right
AS left
AS right
AD left
5
Which of these is
not
a reason the AD curve is sloped?
interest rate effect
Foreign purchases effect
high level of natural resources in the US
wealth effect
6
Which of these is NOT a factor causing shifts in AS?
changes in productivity
changes in the business environment (laws etc)
Changes in input prices
The US's large unemployment
7
What effect does a shift to the left in AS have on the equilibrium level of price/output?
Price down, output down
price up, output up
price down, output up
Price up, Output down
8
What relationship does the Aggregate supply curve show?
price level & level of real total output from firms.
General price level on a basket of goods
C+I+G+X-M
Price level & the quantity of real GDP demanded
9
What relationship does the Aggregate demand curve show?
C+I+G+X-M
Price level and level of total output
Price Level and quantity of real GDP demanded
The general price level of a basket of goods
10
Industrial workers strike and then receive large pay rises: what shift in ADAS does this cause?
shift left AD
shift right AS
shift left AS
shift right in AD
