Econ Unit 5 FA Dummy 2, 2025-26

What is the term for the total demand for all goods and services in an economy at a given time?

• Market Curve

• Aggregate Demand

• Labor Index

• Consumer Wealth

The total amount of goods and services buyers are willing and able to purchase at various price levels is known as:

• Aggregate Demand

• Inflation Curve

• Trade Balance

• Consumer Index

Which of the following refers to the total demand for all final goods and services in a particular economy?

• Aggregate Demand

• Marginal Cost

• Business Investment

• Net Exports

A study finds that when interest rates drop, consumer and business spending both increase significantly. Which economic concept does this behavior reflect?

• Aggregate Demand

• Labor Productivity

• Tax Incidence

• Supply Elasticity

A government stimulus increases public spending, and shortly after, businesses report higher sales across many industries. What is this an example of?

• Aggregate Demand rising

• Trade surplus reduction

• Increase in supply chain delays

• Decrease in fixed capital

During a recession, economists observe falling wages and lower consumer spending. Which component of the economy is most directly affected?

• Aggregate Supply

• Aggregate Demand

• Monetary Base

• National Income

A country reduces personal income taxes, leading to higher consumption and investment. What effect would this have on aggregate demand?

• It would remain constant

• It would decrease slightly

• It would increase overall

• It would affect only imports

A study compares two similar economies. One has higher government spending and consumer confidence, while the other does not. What is likely greater in the first country?

• Aggregate Supply

• Aggregate Demand

• Trade Barriers

• Labor Surplus

A professor asks students to explain what happens to overall demand when prices remain stable but incomes increase. Which concept best addresses this situation?

• Investment Risk

• Elasticity of Supply

• Aggregate Demand

• Structural Unemployment

What term refers to the total supply of goods and services that firms in a national economy plan to sell during a certain period?

• Aggregate Supply

• Aggregate Demand

• Consumer Index

• Production Possibility