Macro Unit 3- Practice Questions #1

This video provides practice questions for macroeconomics, focusing on the aggregate demand curve and its downward slope due to the inverse relationship between price level and real GDP. It explains why certain answers are incorrect and emphasizes the importance of understanding the relationship between interest rates and investment. The video aims to reinforce key concepts through practice questions and detailed explanations.

What happens to aggregate demand when consumer wealth increases?

Describe the impact of government spending on aggregate demand.