A shift to the right of AD could be due to

anexpansionary monetary policy.

Which one of the following is most likelyto cause a fall in aggregate consumer spending?

Areduction in government spending on welfare benefits

The position of an economy’s long runaggregate supply curve is determined by the

productivecapacity of the economy

Consumption (C) is best defined as planned expenditure

byhouseholds on goods and services.

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Macro economics AS/AD

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Intro to AS/AD

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Questions 10

Answers

1
The economys short run aggregate supply curve will shift to the left if
wagerates rise.
labourproductivity increases.
thebudget deficit increases.
theexchange rate rises.
2
A shift to the right of AD could be due to
anexpansionary monetary policy.
anincrease in the current account deficit.
anincrease in the government’s budget surplus.
theintroduction of new supply-side policies.
3
Which one of the following is most likelyto shift the SRAS curve to the right?
Afall in the exchange rate
Areduction in government spending
Adecrease in the productivity of labour
Afall in money wages
4
Which one of the following will cause the AD curve to shift to the left? A decrease in
productivity
unemployment
interestrates
exports
5
A shift in the LRAS curve to the left is most likely to have been causedby a fall in
thecapital stock.
incometax rates.
thegrowth of labour productivity.
interestrates.
6
A shiftin the LRAS curve to the right is most likely to haveresultedfrom
afall in the price level.
investmentin human capital.
anincrease in the natural rate of unemployment.
anincrease in the money supply.
7
Which one of the following is most likelyto cause a fall in aggregate consumer spending?
An increase in house prices
Areduction in interest rates
Areduction in government spending on welfare benefits
Arise in real national income
8
The position of an economy’s long runaggregate supply curve is determined by the
level of wages in the economy.
level of aggregate demand in the economy.
productivecapacity of the economy
rateof inflation in the economy
9
Consumption (C) is best defined as planned expenditure
by theprivate sector on goods and services.
inthe economy on all goods and services.
inthe economy minus expenditure on exports.
byhouseholds on goods and services.
10
Whichof the following is a component of aggregate demand?
Savings
Exports
Taxation
Theprice level.

Macro economics AS/AD Flashcards | StudBud