3.1 Aggregate Demand

3.1 Aggregate Demand

12th Grade

17 Qs

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3.1 Aggregate Demand

3.1 Aggregate Demand

Assessment

Quiz

Social Studies

12th Grade

Practice Problem

Medium

Created by

Adam Yurgionas

Used 38+ times

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17 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following will shift the aggregate demand curve to the right?

A report that corporate earnings were lower than expected

An increase in interest rates caused by a tightening of monetary policy

Increased imports caused by appreciation of the dollar

Increased spending by businesses on computers

An increase in the government’s budget surplus

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following will most likely result from a decrease in government spending?

An increase in output

An increase in the price level

An increase in employment

A decrease in aggregate supply

A decrease in aggregate demand

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following statements best describes the impact of a decrease in Japanese income on aggregate demand in the United States?

There will be no change in aggregate demand because United States aggregate demand depends only on the income of United States consumers.

Aggregate demand will decrease because the demand for United States exports decreases.

Aggregate demand will decrease because the value of the United States dollar decreases relative to the Japanese yen.

Aggregate demand will increase because a decrease in income in Japan causes an increase in income in the United States.

Aggregate demand will increase because interest rates in the United States decrease.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following changes would cause an economy’s aggregate demand curve to shift to the right?

An increase in spending on imports

An increase in autonomous consumption spending

An increase in interest rates

A decrease in the money supply

A decrease in the overall price level in the economy

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Under which of the following conditions would consumer spending most likely increase?

Consumers have large unpaid balances on their credit cards.

Consumers’ wealth is increased by changes in the stock market.

The government encourages consumers to increase their savings.

Social security taxes are increased.

Consumers believe they will not receive pay increases next year.

6.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

When the government spends more, the initial effect is that

aggregate demand shifts right

aggregate demand shifts left

aggregate supply shifts right

aggregate supply shifts left

7.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Aggregate demand shifts left when the government

Decreases taxes

Cuts military expenditures

Both of the above are correct

None of the above is correct

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