Economics: Aggregate Demand

Aggregate demand is the same as national expenditure

• True

• False

Which of the following is NOT a component of aggregate demand?

• investment

• costs

• consumption

• government spending

Which of the following is NOT part of national expenditure?

• Investment

• Consumption

• Exports

• Imports

Do changes in the price level shift the aggregate demand curve?

• Yes

• No

Which way does the aggregate demand curve shift when the level of real disposable income goes down?

• To the right [upwards]

• To the left [downwards]

Which way does the aggregate demand curve shift when interest rates increase?

• To the left [downwards]

• To the right [upwards]

A fall in unemployment affects which determinant of consumption most directly?

• Interest rates

• Asset prices

• Consumer confidence

Which way does the AD curve shift after an increase in overall household debt?

• To the left [downwards]

• To the right [upwards]

The government increases transfer payments. Which way does the AD curve shift?

• To the left [downwards]

• To the right [upwards]

Which way does the AD curve shift when savings decrease?

• To the left [downwards]

• To the right [upwards]