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Aggregate Demand and Aggregate Supply, diagrams Flashcards | StudBud
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Aggregate Demand and Aggregate Supply, diagrams
Aggregate Demand and Aggregate Supply, diagrams
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StudBud Administration
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AP Macroeconomics Unit 3
Flashcards
14 cards
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Practice quiz
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Questions
14
Answers
1
When the government spends more, the initial effect is that
aggregate supply shifts right.
aggregate supply shifts left.
aggregate demand shifts right.
aggregate demand shifts left.
2
Which of the following shifts both short-run and long-run aggregate supply right?
an increase in the capital stock
an increase in the expected price level
an increase in the actual price level
None of the above is correct.
3
An increase in which of the following shifts aggregate demand to the right?
All of the above are correct.
consumption
government expenditures
investment
4
The aggregate supply curve is upward sloping rather than vertical in
the short run, but not the long run.
the short and long run.
the long run, but not the short run.
neither the short nor long run.
5
Which of the following shifts short-run aggregate supply right?
an increase in the minimum wage
an increase in immigration from abroad
an increase in the price of oil
an increase in the actual price level.
6
Consumption would decrease and aggregate demand would shift
right if taxes increased
left if taxes decreased.
right if taxes decreased.
left if taxes increased.
7
When taxes decrease, consumption
decreases, so aggregate supply shifts left.
increases, so aggregate demand shifts right.
increases, so aggregate supply shifts right.
decreases, so aggregate demand shifts left.
8
Which of the following does not determine the long-run level of real GDP?
available natural resources
available technology
the supply of labor
the price level
9
If people want to save more for retirement
AD shifts right. If the gov raises taxes, AD shifts left.
or if the gov raises taxes, aggregate demand shifts left.
AD shifts left. If the gov raises taxes, AD shifts right.
or if the gov raises taxes, aggregate demand shifts right.
10
The aggregate supply curve is vertical in
the short and long run.
the long run, but not the short run.
the short run, but not the long run.
neither the short nor long run.
11
Aggregate demand would shift right if either
PL decreased, or government expenditures increased.
PL decreased, or the gov instituted a tax credit.
all of the above are correct
government expenditures or the money supply increased.
12
Which of the following shifts aggregate supply to the right?
a decrease in the money supply
technology that increases the profitability of goods
the repeal of an investment tax credit
a decrease in the price level
13
Aggregate demand shifts right when the government
All of the above are correct.
increases the money supply.
lowers personal income taxes
repeals an investment tax credit.
14
All of the following can shift Aggregate Supply, except
increased business taxes
changes in the price level
an innovation in technology
supply shocks from trading partners
