QUIZ 2 - Supply & Demand, GDP, & Money

These 2 factors can shift equilibrium between supply and demand.

• Price & Labour

• Labour & Wages

• Wages & Quantity

• Quantity & Price

Keynes’ Law states…

• Supply creates its own supply

• Demand creates its own demand

• Supply creates its own demand

• Demand creates its own supply

This graphic representation shows the total spending on domestic goods and services at each price level.

• Aggregate supply curve

• Aggregate demand curve

• Aggregate supply

• Aggregate supply model

A shift to the right of aggregate demand is associated with what? (Select all that apply)

• Increase in consumer confidence

• Decrease in government spending

• Higher quantity of output

• Higher price level

CHALLENGE QUESTION: If the portion of the SRAS curve falls within the Keynesian zone, which type of policy would be most associated with the Keynesian economic school of thought?

• Expansionary fiscal policy

• Contractionary fiscal policy

• Expansionary monetary policy

• Contractionary monetary policy

What is the relationship between the real GDP and potential GDP in the Neoclassical zone?

• Real GDP is far from potential GDP

• Real GDP is near or at potential GDP

• There is no relationship between real GDP and potential GDP in this zone

Elasticity is indicated by which slope?

• Slope of supply

• Slope of demand

• Slope of price

• Slope of quantity

The Law of Supply refers to the phenomenon that quantity supplied increases as what other factor increases?

• Demand

• Labour

• Wages

• Price

[THIS] measures the economic power of a singular country.

This type of GDP is adjusted for inflation.

• Potential GDP

• Nominal GDP

• Real GDP

• Fake GDP