Aggregate Demand

Which of the following could NOT explain the following diagram?

• An extensive government infrastructure program
• A decline in the price of capital goods
• An increase in bank interest rates
• A rise in consumer confidence

What does the vertical axis represent on the aggregate demand curve?

• Total Input
• Total Output
• Price Level
• Both A&B

Which of the following is not a determinant of aggregate demand ?

• Change in Consumer Spending
• Change in Political Parties
• Change in Government Spending
• Change in investment Spending

Name the principal components of aggregate demand?

• private consumption expenditure
• private investment expenditure
• govt. expenditure
• All of above

What would cause AD to decrease?

• an increase in taxes
• a decrease taxes
• an increase in government spending
• keeping government spending constant

Which of the following would not shift Aggregate Demand?

• Consumption Spending
• A change in exports
• Cost push inflation
• Business Spending

What would be the effect of an increase in exports?

• Increase AD
• Decrease AD
• Increase SRAS
• Decrease SRAS

What would be the effect of an increase in imports?

• Increase AD
• Decrease AD
• Increase SRAS
• Decrease SRAS

Which of the following could NOT explain the following diagram?

• An extensive government infrastructure program
• A decline in the price of capital goods
• An increase in bank interest rates
• A rise in consumer confidence