An increase in aggregate demand will have most effect on prices if:

Aggregate supply is price inelastic

A shift in aggregate supply is likely to:

Increase the general price level and reduce national income

What would help me keep you both awake during the rest of the lesson?

Fire Drill, Free snacks, Coffee from SC sugar shack, Two laps of the field

Increased levels of consumption:

Shift AD outwards so more is demanded at each price

Which of the following is most likely to cause an increase in the LRAS curve?

An increase in literacy levels of the population.

Changes to the benefits system, so that there was less incentive to work, would most likely:

Shift AS inwards so less is supplied at each price

Why is the long-term aggregate supply curve vertical?

In long run, output is fixed by the factors of production

Which of the following correctly describes the components of Aggregate Demand?

Consumption + Investment + Government + Exports - Imports

Increased levels of spending on imports:

Shift aggregate demand to the left

Improved training of employees would:

Shift aggregate supply outwards at each price

studbud

Duplicate of Aggregate Demand and Aggregate Supply

18 termsStudBud Administration7 plays

A macro presentation on the two MOST IMPORTANT concepts of an economy.

Flashcards18 cardsFPractice quizPHost liveL

Questions 18

Answers

1
An increase in aggregate demand will have most effect on prices if:
Aggregate demand is price inelastic
Aggregate supply has a unitary price elasticity
Aggregate supply is price elastic
Aggregate supply is price inelastic
2
A shift in aggregate supply is likely to:
reduce both general price level & material well being
Increase the general price level & increase national income
Increase the general price level and reduce national income
Reduce both general price level and national income
3
Which of the following would increase aggregate demand the most?
Increased taxation revenue
Increasing import spending
Increased saving
Increased investment
4
What would help me keep you both awake during the rest of the lesson?
Fire Drill
Free snacks
Coffee from SC sugar shack
Two laps of the field
5
Which of the following is not a possible result of a right shift of the aggregate supply curve?
Lower price level
Left shift of the aggregate demand curve
Higher output
Lower output
6
Increased levels of consumption:
Shift AS inwards so less is supplied at each price
Shift AD outwards so more is demanded at each price
Shift AS outwards so more is supplied at each price
Shift AD inwards so less is demanded at each price
7
Which of the following is most likely to cause an increase in the LRAS curve?
An increase in taxes.
An increase in interest rates.
An increase in government spending.
An increase in literacy levels of the population.
8
Changes to the benefits system, so that there was less incentive to work, would most likely:
Shift AS inwards so less is supplied at each price
Shift AD outwards so more is demanded at each price
Shift AS outwards so more is supplied at each price
Shift AD inwards so less is demanded at each price
9
Why is the long-term aggregate supply curve vertical?
In short run, output is fixed by the factors of production
In long run, output is fixed by the factors of production
In the short run, output never changes
In the long run, output never changes
10
Which might occur in an economy if more money is demanded than supplied?
The demand curve for money will shift to the left
Interest rates will decrease
Interest rates will increase
The amount of investment spending will increase
11
Which of the following correctly describes the components of Aggregate Demand?
Consumption + Investment + Government - Exports - Imports
Consumption + Investment + Government + Exports - Imports
Consumption + Investment + Government + Exports + Imports
Consumption+Investment + Government +Savings+Exports-Imports
12
Which of the following is an example of a positive supply shock?
Strong collective bargaining
Strict environmental protection laws
Large increase in oil prices
Large decrease in input prices
13
Which of the following would decrease aggregate demand?
Increased taxation revenue
Increasing export revenue
Increased consumption
Increased investment
14
Increased levels of spending on imports:
Shift aggregate supply to the right
Shift aggregate supply to the left
Shift aggregate demand to the left
Shift aggregate demand to the right
15
Improved training of employees would:
Shift aggregate demand outwards at each price
Shift aggregate demand inwards at each price
Shift aggregate supply outwards at each price
Shift aggregate supply inwards at each price
16
Aggregate demand will increase if:
Exports fall
Consumption falls
Investment falls
Imports are restricted
17
Stagflation could be caused by which of the following?
Decrease in aggregate supply
A slow but imminent death
Increase in aggregate demand
Increase in aggregate supply
18
Beginning at equilibrium position at AS1 and AD1, which movement could account for stagflation?
AS1 to AS3
AD1 to AD3
AD1 to AD2
AS1 to AS2

Duplicate of Aggregate Demand and Aggregate Supply Flashcards | StudBud