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Aggregate Supply and Aggregate Demand Flashcards | StudBud
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Aggregate Supply and Aggregate Demand
Aggregate Supply and Aggregate Demand
20 terms
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Questions
20
Answers
1
What could cause the shift in the graph?
Increase in export spending
Increase in government spending
Increase in investment spending
Increase in personal taxes
2
What is the vertical axis of the aggregate demand curve?
Interest rate
Price Level
Income
Output
3
What could cause the shift below?
Decrease in taxes
Increase in government spending
Decrease in business investment
Increase in price level
4
What could cause this shift?
Decrease in business taxes
Increase in government red tape
Decrease in government red tape
Increase in productivity
5
What is the projected impacts of the Liberal governments spending on "Infrastructure" ?
AS will decrease
AD will increase and AS increases in the long run
AD will increase
AD will decrease
6
Which of the following would not affect AS but would impact QAS?
↑Price level
↑Technology
↑Human capital
↑Capital stock
7
What happens to the aggregate demand curve when the marginal propensity to consume increases?
It increases
It descreases
It stays the same
It is inverted
8
Which way would the AS curve move to reflect an increase in the PPC?
left
down
right
up
9
When disposible (available to spend) income falls, what happens to the aggregate demand curve?
it does not change
it shifts right
it is inverted
it shifts left
10
What does the word "Aggregate" mean?
Farming agriculture demand and working with water in fields
Government demand for goods and services
All of demand for all goods and services
Mr. Klemp gets aggregated when he see's a Coke guy
11
What happens to the AS curve as Canada graduates more productive and educated individuals?
It shifts right
It shifts left
12
What happens to the aggregate demand curve when the savings rate or interest rate increases?
It shifts right
It is inverted
It shifts left
It does not shift
13
Which area of aggregate demand would new housing fall under?
Net exports
Investment
Consumption
Government spending
14
Marginal Propensity to Save and Marginal Propensity to Consume are equal to:
Spending multiplier
Two
Tax multiplier
One
15
What area of aggregate demand does movie tickets fall under?
consumption
Net exports
investment
government spending
16
What would cause this shift?
Decrease in investment
Increase in exports
Increase in productivity
Decrease in government spending
17
What could cause the shift in AS?
Decrease in government spending
Destruction of key roads and bridges after a hurricane
Increase in consumption
Decrease in wages
18
Fear of a future economic downturn would most likely lead to
↑AD
↑Price level
↑employment
↓AD
19
Why is there a vertical section of the Short run AS curve?
Simply all resources are at maximum production
Unused resources
Keynsian
Money problems
20
What happens to unemployment in this graph?
Decreases
Same as change in GDP
Increases
Unchanged
