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Duplicate of Aggregate Demand and Aggregate Supply Flashcards | StudBud
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Duplicate of Aggregate Demand and Aggregate Supply
Duplicate of Aggregate Demand and Aggregate Supply
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StudBud Administration
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AP Macroeconomics Unit 3
Flashcards
25 cards
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Practice quiz
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Questions
25
Answers
1
When taxes decrease, consumption
decreases, so aggregate demand shifts left.
decreases, so aggregate supply shifts left.
increases, so aggregate demand shifts right.
increases, so aggregate supply shifts right.
2
The aggregate supply curve is vertical in
the short run, but not the long run.
neither the short nor long run.
the long run, but not the short run.
the short and long run.
3
An increase in which of the following shifts aggregate demand to the right?
investment
consumption
government expenditures
All of the above are correct.
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
Consumption would decrease and aggregate demand would shift
right if taxes decreased.
left if taxes increased.
right if taxes increased
left if taxes decreased.
6
Which of the following shifts short-run aggregate supply right?
an increase in the actual price level.
an increase in immigration from abroad
an increase in the minimum wage
an increase in the price of oil
7
Which of the following shifts both short-run and long-run aggregate supply right?
an increase in the capital stock
an increase in the actual price level
None of the above is correct.
an increase in the expected price level
8
Which of the following does not determine the long-run level of real GDP?
the supply of labor
available natural resources
the price level
available technology
9
An increase in EXPECTATIONS of the price level shifts short-run aggregate supply to the
right. Increasing the actual PL shifts SRAS to the right.
left. Increasing the actual PL does not shift SRAS.
left. Increasing the actual PL shifts SRAS to the left.
right. Increasing the actual PL does not shift SRAS.
10
If the dollar appreciates because of speculation or government policy, then U.S. net exports
increase and aggregate demand shifts left
increase and aggregate demand shifts right.
decrease and aggregate demand shifts left.
decrease and aggregate demand shifts right.
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
If countries that imported from the US went into recession, U.S. net exports would
fall, making aggregate demand shift left.
rise, making aggregate demand shift left.
fall, making aggregate demand shift right.
rise, making aggregate demand shift right.
13
When the government spends more, the initial effect is that
aggregate demand shifts left.
aggregate supply shifts left.
aggregate supply shifts right.
aggregate demand shifts right.
14
If the dollar appreciates because of speculation or gov policy, or other countries = recession
AS shifts left in the US
AD shifts right in the US
AD is unchanged in the US
AD shifts left in the US
15
Which of the following shifts aggregate demand to the right?
All of the above are correct.
an investment tax credit
an increase in net exports at every exchange rate
an increase in the money supply
16
Which of the following shifts aggregate demand to the right?
Congress reduces purchases of new weapons systems
Net exports fall.
The price level falls.
The Fed buys bonds in the open market.
17
Aggregate demand shifts right when the government
repeals an investment tax credit.
lowers personal income taxes
All of the above are correct.
increases the money supply.
18
Which of the following shifts aggregate demand to the left?
an increase in net exports
a decrease in the money supply
an investment tax credit
an increase in the price level
19
Aggregate demand shifts left when the government
Both of the above are correct.
decreases taxes.
cuts military expenditures.
None of the above is correct.
20
All of the following can shift Aggregate Supply, except
changes in the price level
increased business taxes
supply shocks from trading partners
an innovation in technology
21
Which of the following shifts aggregate demand to the left?
Stock prices fall.
The dollar depreciates.
The price level rises.
The price level falls.
22
Which of the following shifts short-run, but not long-run aggregate supply right?
a decrease in the price level
a decrease in the capital stock
a decrease in the expected price level
an increase in the money supply.
23
If people want to save more for retirement
or if the gov raises taxes, aggregate demand shifts left.
AD shifts right. If the gov raises taxes, AD shifts left.
or if the gov raises taxes, aggregate demand shifts right.
AD shifts left. If the gov raises taxes, AD shifts right.
24
Which of the following shifts aggregate supply to the right?
a decrease in the money supply
a decrease in the price level
technology that increases the profitability of goods
the repeal of an investment tax credit
25
At the end of WW2 many countries were rebuilding. The rebuilding increased AD in
both the United States and Europe.
Europe, but not the United States.
the United States but not Europe.
neither the United States, nor Europe.
