What situation couldn't have caused the change in the macroeconomic diagram below?

Cost of factors of production decline

Which of the following is not primarily a factor affecting the value of C and hence AD?

Worker productivity or efficiency

Which one of the following is likely to cause a shift in the aggregate supply curve from AS1 to AS2?

an increase in production costs

A rise in the value of the Australian dollar against the US dollar tends to:

cause a fall in the level of economic activity in Australia

A change in AD as illustrated in this graph may be due to:

a decrease in personal income tax

What situation could have caused the change in the macroeconomics diagram below?

Increasing costs of factors of production

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VCE Economics Unit 3 AOS 2 - Factors affecting AD and AS

15 termsStudBud Administration75 plays

A quiz to test ability to identify how factors affect aggregate demand and short-run aggregate supply.

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Questions 15

Answers

1
Which of the following components of aggregate demand is the largest?
investment
Exports
consumption
government consumption expenditure
2
What situation couldn't have caused the change in the macroeconomic diagram below?
Cost of factors of production decline
Investment (I) decreases
Exports (X) decrease
Imports (M) increase
3
What situation could have caused the change in the macroeconomic diagram below?
Decreased exports (X)
Increased investment
Increased costs of factors of production
Increased costs of imports
4
What situation couldn't have caused the change in the macroeconomic diagram below?
Government spending declines
Wages decline
Investment (I) declines
Exports (X) increase
5
Which of the following is not primarily a factor affecting the value of C and hence AD?
Household disposable income
Changes in rates of personal income tax
Worker productivity or efficiency
Interest rates offered on savings accounts and charged on home mortgages
6
Which one of the following is likely to cause a shift in the aggregate supply curve from AS1 to AS2?
a decrease in interest rates
an increase in production costs
an increase in government spending
an increase in profitability of businesses
7
A rise in the value of the Australian dollar against the US dollar tends to:
cause a fall in the level of economic activity in Australia
increase the level of AD or spending on Australian-made goods and services
increase the competitiveness of Australian exports to buyers in the US
reduce our spending on goods and services imported from the US
8
Which one of the following components of aggregate demand is the most unstable?(VCE 2016 Economics Exam)
private investment expenditure
private consumption expenditure
government consumption expenditure
government investment expenditure
9
A change in AD as illustrated in this graph may be due to:
a decrease in personal income tax
an increase in labour costs
higher oil prices
an appreciation of the exchange rate
10
The change in AD as illustrated in this graph is not due to:
Lower growth in the economies of our major trading partners
A reduction in consumer confidence
lower productivity
higher company tax rates
11
What situation could have caused the change in the macroeconomic diagram below?
Increased exports (X)
Decreased government spending (G)
Increased oil prices
Decreased investment (I)
12
What situation could have caused the change in the macroeconomics diagram below?
Increasing costs of factors of production
Decreasing wage rates
Increasing consumption (C)
Decreasing imports (M)
13
What situation could have caused the change in the macroeconomics diagram below?
Increase in consumption (C)
Decrease in investment
Rise in wages
Decline in oil prices
14
What situation could have caused the change in the macroeconomics diagram below?
Government spending (G) increases
Wage rates increase
Exports (X) decrease
Oil prices decrease
15
What situation could have caused the change in the macroeconomic diagram below?
Increased exports (X)
Increased costs of factors of production
Increased government spending (G)
Declining wage rates

VCE Economics Unit 3 AOS 2 - Factors affecting AD and AS Flashcards | StudBud