A fall in personal tax rates causes

a right ward shift of the AD curve due to C

A rise in the interest rate causes

a leftward shift of the AD curve

LRAS is vertical because

changes in PL have no effect on output

Fear of unemployment increasing next year leads to

Leftward shift of AD due to C and I

Aggregate demand measures

the goods and services bought in an economy

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Aggregate Supply and Aggregate Demand

13 termsStudBud Administration305 plays

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

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Questions 13

Answers

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

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