
Aggregate Demand and Economic Effects

Interactive Video
•
Business, Economics, Social Studies
•
10th - 12th Grade
•
Hard

Patricia Brown
FREE Resource
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10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is aggregate demand a measure of?
Total quantity of goods produced
Total expenditure on goods and services
Total savings in an economy
Total imports and exports
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is NOT a component of aggregate demand?
Consumer spending
Investment spending
Government spending
Savings
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why does the aggregate demand curve slope downwards?
Because of constant price levels
Due to increasing government spending
Due to an inverse relationship between price level and real GDP
Because of a direct relationship between price level and real GDP
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What happens to purchasing power when the price level decreases according to the wealth effect?
It increases
It fluctuates randomly
It remains unchanged
It decreases
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does a decrease in price level affect exports according to the trade effect?
Exports remain unchanged
Exports become more competitive
Exports decrease
Exports become less competitive
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the impact of lower interest rates on consumption and investment?
They fluctuate
They increase
They remain unchanged
They decrease
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which effect explains the change in aggregate demand due to changes in interest rates?
Trade effect
Wealth effect
Interest effect
Price effect
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