Aggregate Demand

Aggregate Demand

12th Grade

20 Qs

quiz-placeholder

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Aggregate Demand

Aggregate Demand

Assessment

Quiz

Other

12th Grade

Practice Problem

Hard

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20 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which one of the following is most likely to result in an increase in the long-run trend rate of

economic growth?

An increase in aggregate demand leading to inflationary pressures

A sustained increase in the value of the pound on the foreign exchange market

A reduction in taxes which increases risk-taking and incentives to work

A sustained reduction in both inflation and labour productivity.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A change in any of the following factors could cause the aggregate demand curve to shift except:

fiscal policy

expectations

monetary policy

price level

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following would NOT cause a shift in AD?

A reduction in income tax

A reduction in interest rates

An increase in government spending

A fall in the cost of production

4.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

All of the following can shift aggregate supply, except

Supply shocks from trading partners

Increased business taxes

Changes in the price level

an innovation in technology

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is most likely to occur if (X-M) shows more exports than imports?

Depreciation of currency, Shift of AD to the left

Depreciation of currency, Shift of AD to the right

Appreciation of currency, Shift of AD to the right

Appreciation of currency, Shift of AD to the left

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

If the dollar appreciates(increases in value) because of speculation or government policy, the U.S. net exports

increase and aggregate demand shifts right

increase and aggregate demand shifts left

Decrease and aggregate demand shifts right

Decrease and aggregate demand shifts left

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