What is the relationship between price levels and aggregate demand?
Aggregate Demand and Supply and LRAS; Macroeconomics

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Business
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11th Grade - University
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Hard
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5 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Exponential relationship
No relationship
Inverse relationship
Direct relationship
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is NOT a component of GDP in aggregate demand?
Foreign Aid (FA)
Consumption (C)
Investment (I)
Government Spending (G)
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why is the short-run aggregate supply curve upward sloping?
Because wages and resource prices increase immediately
Because government intervention is constant
Because firms produce more when prices rise
Because consumer demand decreases
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What happens to wages in the long run when price levels increase?
Wages increase by a smaller amount than prices
Wages increase by the same amount as prices
Wages decrease
Wages remain constant
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the effect of a recessionary gap on aggregate demand?
It shifts aggregate demand to the left
It shifts aggregate demand to the right
It has no effect on aggregate demand
It causes aggregate demand to become vertical
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